Lack of information a key issue affecting compliance to EPC changes
While the vast majority (78%) of landlords are aware about government proposals around EPC ratings, a similar proportion (73%) think that the government has done a poor job at communicating the proposed EPC changes.
New research from specialist lending bank Shawbrook has shown that a lack of information appears to be a key issue for landlords looking to comply with EPC changes, with 31% citing it as a barrier for them in improving the EPC ratings of their properties. Ultimately, 68% of landlords agree that there isn’t enough support for them to make improvements.
Shawbrook’s research comes following the autumn statement, in which Chancellor Jeremy Hunt reaffirmed the government’s commitment to net zero with a proposal to reduce energy consumption from buildings and industry by 15% by 2030. Hunt revealed that the government will be doubling funding to improve the energy efficiency of buildings and industry to achieve the target, adding another £6 billion from 2025.
While landlords are currently able to let homes which have an EPC rating of ‘D’ and above, government standards are widely expected to become tougher. The government has previously set a target for a minimum ‘C’ rating in England and Wales by April 2025. Future legislation could see landlords unable to take on new tenants or face fines if they fail to comply with the changes.
Shawbrook’s research, part of its ‘Confronting the EPC Challenge’ report, highlights the role that both lenders and brokers can play in supporting landlords with creating a more sustainable property portfolio.
The research further showed that 56% of landlords have now spoken to either a lender or broker about the expected EPC proposals. Four in 10, however, still have not discussed the proposals with either their lender or broker.
“Landlords are already grappling with a volatile housing market so it’s vital that they are planning ahead where possible,” Emma Cox (pictured), managing director of real estate at Shawbrook, commented.
“The government has made clear its aspirations for net zero buildings and every homeowner and property investor in the UK will have a role to play in getting us to this goal. However, while many landlords have done their homework and know of the current EPC proposals, there is still a huge amount of uncertainty.”
Cox added that while some in the industry are still waiting for confirmation from the government or direction on the timings of the proposals, others are already taking action to make their properties more sustainable.
“The fear is with materials and service costs going up, improvement work could become increasingly expensive as the proposed 2025 deadline comes closer,” she pointed out.
“At Shawbrook, we want to support our landlords as they look to improve the energy efficiency of their properties, and at our recent industry roundtable we discussed the role that brokers and lenders can play and the guidance we can offer.
“We’re continuing to work alongside UKGBC and speak to our broker partners, and customers about the upcoming legislation and the wider impact on tenants of the cost-of-living crisis and would urge the rest of the industry to be doing the same.”
