Landlords see opportunities from buying EPC ‘D’ properties

Research undertaken by Landbay has found that awareness of EPC changes is much higher among portfolio landlords than non-portfolio landlords.

70% are aware that all rental properties must have an Energy Performance Certificate (EPC) rating of A, B or C. The research also revealed that 68% of the landlords surveyed had properties with an EPC rating of D or lower. However, the majority of those (80%) intend to make changes to bring their properties up to at least a C rating.

Currently, the proposals are that new tenancies must be C rated by 2025 and for existing tenancies it is 2028.

Landbay said some landlords are viewing these changes as an opportunity, especially those with larger portfolios of 10 properties or more. In our survey, 53% of these landlords said they would consider buying homes that were D rated or lower and bring them up to at least a C rating.

This compares to 32% of portfolio landlords with four to 10 properties who would do the same but only 20% of non-portfolio landlords would choose to buy and upgrade.

For those landlords who know about the proposed EPC changes and are also aware of green mortgages, 84% of them like the incentive of a discounted interest rate.

Paul Brett, managing director, intermediaries at Landbay, said: “Our survey shows that most landlords are aware of the potential new EPC rulings by 2025 and many will have to upgrade their properties to a C rating. Some of them, especially the larger portfolio landlords with 10 or more properties, are looking at how they can turn this to their advantage.

“Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenant’s energy bills. A few extra thousand pounds spent at the buying stage will be an investment for the longer term.

“As awareness of EPC requirements and green mortgages improves, I expect to see many more landlords taking advantage of the lower rates offered by the green mortgage.”

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2 Comments

  1. Tony Orchard

    I would love to know where they got their information that “all rental properties must have an Energy Performance Certificate (EPC) rating of A, B or C”.
    It is not yet law and is still in the discussion phase.
    Everybody with something to gain from peddling this as a done deal is spreading the FUD.
    … then it is repeated verbatim by editors that don’t fact-check the copy they are given.
    (This is not intended as a slur against iHowz, I respect them more than any other)

    • Admin login

      Thank you very much for pointing this out Tony.

      As you say, it’s not a done deal but still making its way round Parliament. So currently the existing rules of a minimum rating of E (ie, can’t let an F or G rated property) and a cap of £3,500 apply.

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