Over third of landlords to sell amid EPC reforms

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.”