The survey results from bridging broker Finbri, come after the new government recently confirmed that all rental properties must achieve an Energy Performance Certificate (EPC) rating of Band C by 2030
More than three quarters of landlords are concerned about escalating costs due to inflation and 71% are concerned about energy prices.
The survey results from bridging broker Finbri, come after the new government recently confirmed that all rental properties must achieve an Energy Performance Certificate (EPC) rating of Band C by 2030.
Reaching this target is set to be expensive for landlords, with the average cost of upgrading to a C rating running to £10,000.
Inflation has been driving up the cost of building work and materials, making it more expensive to retrofit properties.
Landlords who fail to meet the standards could have their properties branded unfit to rent or face hefty fines.
Almost two-thirds of all BTL properties in the UK currently have an EPC rating of D or below and will need upgrading.
The cost of the typical improvements needed to increase the rating, such as insulation, double or triple glazing and heating system upgrades has increased sharply with inflation.
For instance insulation materials are 20-30% more expensive than they were before the pandemic, as per Finbri.
The price of new boiler installations has increased by 15-25% over the last four years, it says.
Finbri bridging finance founder Stephen Clark says: Most people appreciate the need to lower carbon emissions and make properties more energy-efficient, but the new additional EPC regulations will put a further financial strain on smaller landlords in the private rented sector.
Making necessary improvements to meet the new regulations will likely cost thousands of pounds per property, he says.
Meeting the new government’s energy efficiency standards will force property investors to find ways to offset that cost, he says.
