Tenants and landlords alike are struggling to engage with the EPC system, according to research from LRG.
LRG carried out the research ahead of new regulations that would mandate PRS properties to have a minimum EPC rating of C. The firm surveyed 373 landlords and 238 tenants.
Although landlords supported the principle of improving energy efficiency, seven in 10 believe EPC rules should take into account the level of control they have over their property.
In particular, this relates to leasehold flats and converted buildings.
Only 16% of landlords were very confident in the EPC ratings while one in five admitted they either don’t understand EPC advice or are unsure if it’s relevant.
Tenants display similar levels of disengagement. Just one in four tenants surveyed told LRG that EPC influenced their decision to rent a home.
A further third of tenants said they were aware of EPCs but paid no attention to them, while half of all tenants admitted they didn’t understand EPCs.
When asked if they’d be willing to pay more for an energy-efficient property, 67% of tenants said they would prefer to keep their rent low.
Only a third of this sample said they would accept a modest increase for better energy performance.
“EPCs in their current form don’t provide landlords with the confidence or clarity they need to act,” said Allison Thompson, national lettings managing director at LRG.
“The ratings often feel inconsistent, the advice is vague and the cost of compliance remains unclear.
Currently, most renters are unfamiliar with EPCs or have never considered them — that tells us the current system isn’t just underperforming, it’s invisible to half the market.”
