Currently, the proposals are that new tenancies must be C rated by 2025 and for existing tenancies it is 2028
Research undertaken by Landbay has found that awareness of EPC changes is much higher among portfolio landlords than non-portfolio landlords.
70% are aware that all rental properties must have an Energy Performance Certificate (EPC) rating of A, B or C. The research also revealed that 68% of the landlords surveyed had properties with an EPC rating of D or lower. However, the majority of those (80%) intend to make changes to bring their properties up to at least a C rating.
Currently, the proposals are that new tenancies must be C rated by 2025 and for existing tenancies it is 2028.
Landbay said: Some landlords are viewing these changes as an opportunity, especially those with larger portfolios of 10 properties or more. In our survey, 53% of these landlords said they would consider buying homes that were D rated or lower and bring them up to at least a C rating.
This compares to 32% of portfolio landlords with four to 10 properties who would do the same but only 20% of non-portfolio landlords would choose to buy and upgrade.
For those landlords who know about the proposed EPC changes and are also aware of green mortgages, 84% of them like the incentive of a discounted interest rate.
Paul Brett, managing director, intermediaries at Landbay, said: Our survey shows that most landlords are aware of the potential new EPC rulings by 2025 and many will have to upgrade their properties to a C rating. Some of them, especially the larger portfolio landlords with 10 or more properties, are looking at how they can turn this to their advantage.
He said: Buying properties and making them more energy efficient will raise the value of the property and the rental income landlords can charge, as well as reducing tenant’s energy bills. A few extra thousand pounds spent at the buying stage will be an investment for the longer term.
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