Support for EPC reforms is strong among tenants according to research by Leaders Romans Group, but there is less appetite to pay higher rent as a result.
The survey of tenants found 80% are in favour of the government’s plans to mandate all privately rented homes to a minimum EPC rating of C.
However, only 6% of tenants are willing to pay more rent to cover the cost of upgrading properties to this standard.
The cost of the upgrade work this regulation will create has been criticised within the BLT industry. According to Rightmove, retrofitting a property to meet a C rating will generate an average cost of £8,074 per property.
With tenants unwilling to pay higher rents, this creates a challenge for landlords.
In releasing the research, Leaders Romans Group highlighted that the Green Homes Grant government initiative has been closed with the majority of other support - such as grants available under the Energy Company Obligation - focused on low-income households.
One landlord who spoke to Leaders Romans Group for the firm’s research warned this may create evictions as a result: “I simply can't face the cost, so to be compliant with the law I will have to evict my tenants when that time comes.
“There are likely to be hundreds or thousands of landlords thinking the same thing.”
As such, Allison Thompson - national lettings managing director at Leaders Romans Group - said balancing demand for sustainable homes and the financial realities for both tenants and landlords was a “significant challenge.”
She added: “Without government intervention or financial incentives, the adoption of these features will likely remain slow, despite growing interest. Collaboration between the government, landlords, and tenants is essential to meet the UK's energy efficiency goals.
“Incentives are crucial to ensuring sustainability without increasing financial strain on either party."
