United Kingdom
December 2021
UK Rent Report

EPC exodus expected

Go back to blogs page
Back

Could stricter energy efficiency rules push landlords into selling their properties? A new poll suggests they could. 

The government plans to make EPC C the minimum standard for new tenancies from April 2025, and for existing tenancies from April 2028. Buy-to-let mortgage provider The Mortgage Works polled landlords who own properties with an EPC of D or below, and found that 52% would consider selling rather than renovating to meet the new requirements.

Landlords with bigger portfolios were more likely to sell. More than 60% of landlords with 20 or more properties said they would put some on the market, compared to just 35% of landlords with only one property.

How large of a selloff could we see? The most recent English Housing Survey found that 41.8% of privately rented homes in England had an EPC rating of C or better. The remainder – almost 2.5 million properties – would need to be upgraded, costing an estimated average of £7,600.

However, under the current rules, properties can be exempted from the minimum EPC E rating if it would cost more than £3,500 to make energy efficiency improvements. And millions of homes across the UK, especially in rural areas, may not be able to reach this level at all. 

Landlords who sell up now may be missing out on a hot rental market too. The Royal Institute of Chartered Surveyors estimates that rents will grow by an average of 5% p.a. over the next five years, thanks to rising tenant demand. Some investors with energy-inefficient properties may well decide that that will cover the cost of double glazing.

Other landlord headlines

Mortgage lending to landlords jumped by 83% this year– LandlordZONE

Law student takes landlord to court – and wins – Eastern Daily Press

Jailed! Tenant who punched, kicked and bit landlord – Landlord Today

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Subscribe
Subscribe to our blog and we will keep you informed of new market reports, blog posts, product and industry news

Interested in hearing more about their stories? Here are a few more of our client videos.

Carrie Alliston, Hunters
Ximena Davidson, East Vista Management
David Summerton, Harcourts Summerton
Dave Votta, Votta Sales & Lettings
Pascual Candia, Venecan Property Management
Chris Lesky, PADRentals
Robert Budd, New Forest Rentals
Mark Shanta, Shanta Residential
Paul Stevens, Just Property
Ellie Bell-Jenks, Dourish & Day
Shannon Lesky, PADRentals
Charlie Green, Hunters

You might also like