A survey of 1,000 landlords conducted by Shawbrook found that 24 per cent would completely bypass low rated homes, while a further 24 per cent will consider energy efficient homes first.
Government proposals suggest new rental tenancies will need at least an EPC rating of ‘C’ by 2025, while existing properties will need to be renovated and improved to this level by 2028.
As older homes are less likely to have EPC ratings of C or above, 15 per cent of Shawbrook’s respondents said they will only purchase homes built within the last 20 years.
Period homes could become a thing of the past
Shawbrook warned that the new rules could have an impact on the types of properties landlords choose and potentially create an issue for the UK’s housing market. The lender said demand for period homes could dwindle, leaving current owners unable to sell unless they make improvements.
Landlords predict that EPC-related refurbishments will cost them £5,900 on average.
The survey also found that 28 per cent of landlords had already received at least one complaint from tenants regarding a property’s EPC rating, while 16 per cent said they had received multiple.
Respondents said they were more likely to make changes to a property if tenants asked them to, with 61 per cent agreeing with the statement.
Emma Cox (pictured), managing director of real estate at Shawbrook, said: “It’s concerning to think that a significant proportion of properties, within the private rental sector, could fall out of favour due to poor EPC ratings and significant improvements needing to be made in a short period of time. The market has a responsibility to offer landlords more guidance on what the proposed legislation will mean for them, where to start with improvements, and how to sustainably finance the works.
“Proactive landlords already making changes ahead of the proposed deadline will be in a strong position for the future, constantly one step ahead of the upcoming changes. While our research shows that most landlords are set to commence improvement works within the coming 14 months, making changes sooner rather than later will limit the risk of supply and labour shortages as we edge closer to the proposed 2025 deadline.”