Over a third of landlords are planning to downside their property portfolios due to upcoming EPC regulations, research from Pegasus Insight has revealed.
The government is set to mandate all PRS properties to have a minimum EPC rating of C which will force many landlords to invest in efficiency upgrades.
Pegasus Insight’s survey of 794 landlords found that 38% intend to sell at least one property in the next 12 months with new energy efficiency requirements cited as the most popular reason.
On average, 56% of the landlords surveyed said they had a property rated D with 20% admitting their properties were rated even lower.
Larger landlords are expected to be the most heavily impacted with 78% of those with over 11 properties having an average 9.2 properties with an EPC rating of D or below.
“Energy efficiency rules are now a decisive factor in landlords’ business decisions,” said Mark Long, founder and director at Pegasus Insight.
“This is a pivotal moment for the sector: the ambition to improve energy standards is welcome, but without clearer guidance and practical support, there’s a real risk that good landlords will simply choose to exit the market rather than invest.”
