According to a study by data science company Outra, London renters will suffer under the proposed government EPC regulations to upgrade all rental properties to a rating of C by 2028.
The government’s proposed changes could cause the capital to be one of the worst affected areas, with 1.9 million rooms set to be unlettable by 2028.
Outra found 4.5 million rental properties across the UK currently have an EPC rating of D or below — 841,000 of those are in London.
The proposed deadline for newly let rentals to reach the new standard is 2025, while other rental properties would have until 2028.
Phil Tennant, COO at Upstix, a cash buyer of homes and sister company of Outra, said: “Rental growth remains robust; storm clouds are on the horizon for BTL investors.
“With higher interest rates eating into profits, even as average rents continue to increase, the sector is looking markedly less attractive as we move further away from historically low rates.
“The real danger lies just around the corner: for many small landlords, finding the cash to upgrade their properties in today’s tough environment may be the straw that breaks the camel’s back.”
The UK has the oldest housing stock in Europe with almost 38% of homes being built prior to 1946 — meaning many will have lower ratings and will need upgrading.
