The majority of landlords are failing to meet the new EPC minimum requirements, according to research commissioned by Foundation Home Loans.
It has been revealed, in a 2024 survey of landlords conducted by Pegasus Insights, that 67% of landlords owning at least one property are not meeting the proposed minimum rating of ‘C’.
The government is planning to consult on increasing the efficiency of private rented housing stock, increasing this from ‘E’.
Encouragingly, awareness of the issue is high among landlords. Based on the 720 online interviews carried out by Pegasus Insights, 92% of landlords have at least some knowledge of these requirements.
However, only 67% admit to having a “thorough” understanding of the details.
When asked about their plans to improve efficiency, 42% of landlords plan to make the necessary improvements to bring their properties up to code. Of this cohort, 24% plan to carry out works at the minimum cost required while 14% are willing to go further and maximise the long-term value of their assets.
In contrast, 34% plan to sell their property instead of carrying out any work.
For those planning to carry out work, 71% will fund this through savings while 42% will raise rents to cover the costs. Others (28%) will turn to government grants while 12% would explore the release of equity from their portfolio.
Grant Hendry, director of sales at Foundation Home Loans, said landlords face “important decisions” in light of the upcoming consultation.
“As landlords adopt varied approaches to meet these standards, ranging from minimal-cost upgrades to comprehensive property improvements, it’s clear that personalised guidance is essential,” added Grant. “Green mortgage solutions can offer landlords a strategic way to finance these upgrades, enhancing property value and reducing long-term costs.
“For lenders and intermediaries, these conversations not only strengthen client relationships but also broaden the scope of services in a sector increasingly focused on sustainability.”
