More than half of landlords (54%) have made energy efficiency improvements for their properties in the last six months, revealed the latest research from Shawbrook Bank.
The study surveyed 1,000 tenants, 1,000 landlords and 210 mortgage brokers as part of the bank’s second report on the government’s proposed changes to EPC requirements for rented homes.
According to the research, the landlords’ decision to undertake energy improvements in the last six months was driven by the renters’ reluctance to consider inefficient properties with low EPC ratings.
Of the 1,000 tenants surveyed, 58% said they would be less likely to consider a property with an energy rating of D or below.
Shawbrook’s research also revealed that a significant knowledge gap still remains within the landlord community.
While 78% of landlords said they heard about the 2025 proposals, more than a third know only ‘a bit’ about the changes — something that worries 75% of brokers surveyed.
In addition, the Shawbrook study highlighted concerns that many landlords could exit the market, with significant effects on the availability of properties.
Nearly two-thirds of landlords said they could sell their properties in the next five years because of the burden of EPCs.
In addition, almost two in five brokers with BTL clients have seen landlords exit the market rather than make energy efficiency improvements.
Emma Cox, managing director of real estate at Shawbrook (pictured above), said: “Whatever happens with the government’s proposals, it’s clear that landlords need to be thinking about making energy efficiency improvements to safeguard their rental properties.
“As well as the need for clarity from policymakers, the industry has a significant role to play in supporting landlords — only by working together can the industry play its part in safeguarding the future of the private rented sector.
“As a specialist lender, Shawbrook has been developing finance discounts to help landlords improve their properties — rewarding those with properties that are up to standard and incentivising those who need to make upgrades.
“We’re committed to building on the findings of this research — and the conversation around it — to developing new solutions to drive the sector forward."
