Last September, proposed regulations for all private rental properties to have a minimum EPC rating of C were shelved, but research indicates that 37% of portfolio landlords intend to go ahead and improve the energy performance of their properties anyway. [1]
Some already upgraded The legislation would have required all landlords to upgrade their EPC rating by 2028, but some property owners already meet that standard. The report, which surveyed nearly 400 landlords who have at least four rental properties, found that almost a third (32%) of respondents only own properties with an EPC rating of C or above.
The road to improvement Of the landlords who are carrying on with improvements, 28% expect that it will take one to two years for all their properties to hit a C rating. Meanwhile, 17% believe it could be five years before they have completed the work.
Others less committed despite the benefits Not everyone is so keen on making upgrades if it is not a legal requirement; 16% of landlords surveyed have paused their plans until legislation is introduced. In fact, one in 10 said their portfolio strategy was unaffected by the proposed regulations. However, there are many advantages to upgrading the energy efficiency of a property, even if it is not mandatory. Monthly utility bills are likely to be cheaper, plus there is a high chance that the property will increase in value.
[1] Paragon Bank, 2024
🚨 Data accurate as of the date of publication –02.08.2024
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Source: Quilter Financial Planning – Essentially Mortgages Q3 2024
