Rental stock concerns ahead of energy efficiency regulations for landlords
Rental stock may be constrained in the coming years as a quarter of landlords have poor energy efficiencies, ahead of tougher tenancy regulations.
Some 23 per cent of landlords said their properties were rated D or below, according to a report from Shawbrook Bank.
The government is eyeing requirements to force landlords to improve their properties to upgrade homes’ EPC rating up to a C or above by 2025. Landlords will have until 2028 to make changes for existing tenancies.
Just under one third of landlords with Victorian properties said their homes were rated D or below – meaning improvements will be costly.
Two in ten landlords said they cannot afford to start upgrading their properties, with older landlords finding it especially tough.
Shawbrook Bank warned cash-strapped landlords could be left with properties they cannot rent out, which are unmortgageable and unsellable.
Almost half of landlords signalled they would like to see guidance on what the EPC legislation means for them. Nearly one in four said they would like to see incentives for improvements, such as favourable borrowing rates.
One third of landlords also called for guidance on timings on how to phase the implementation of changes.
Emma Cox, sales director at Shawbrook Bank, called for more resources so landlords can make the appropriate changes for their properties and their tenants.
Cox added: “Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords. The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.
“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.”