Two-thirds of landlords own rentals with EPC of D or below 

Only a quarter of landlords’ portfolios contain properties that all have an EPC rating of C for energy efficiency, according to a study by Shawbrook. And nearly four in 10 only have properties that are rated D or below.

From 2025, it’s expected that landlords’ properties will need to have an EPC rating of C and above for new tenancies. This could mean investors will be unable to let homes unless they make radical changes.

Landlords estimate that bringing the average property up to a C standard would cost them almost £2,000.

‘Landlords need to take note’

Emma Cox, managing director of real estate at Shawbrook, said: “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan.

“Landlords should know that they are not alone in this. Lenders, including Shawbrook, are working hard to help drive awareness of regulatory change, support with creative product options, and offer practical support to customers and partners. Standard products like bridging finance can also play a role in securing the future of the sector.

“During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals”.

In early September, Specialist Lending Solutions reported that upcoming legislation on EPC requirements for rental properties could force some landlords to sell properties in the short term due to rising compliance costs and cost of living crisis.