Around 4.7 million rental rooms across the UK are in properties with an EPC rating of D or below, potentially putting them at risk of being unlettable or sold by the landlord.
According to market research firm Outra, around 1.9 million rooms are located in London alone, putting capital-based tenants at a particular risk.
Upcoming EPC legislation could mandate that all tenancies should have a minimum rating of C by 2028, however this is not yet law and rumours have abounded that there could be delays to this becoming law.
Current legislation mandates that rental properties in England and Wales should have an EPC rating of E or higher prior to be letting.
The bill is currently on its second reading in the House of Commons.
The government has previously said that it would cap the maximum spend to upgrade a property to around £10,000, regardless of whether an EPC rating of C is achieved.
Outra said landlord could face a cumulative bill of £45bn to upgrade their properties to the bare minimum standard.
Phil Tennant, COO of Upstix, a cash buyer of homes and sister company of Outra, said: “Rental growth remains robust, storm clouds are on the horizon for buy-to-let investors. With higher interest rates eating into profits, even as average rents continue to increase, the sector is looking markedly less attractive as we move further away from historically low rates.
“The real danger lies just around the corner in 2028, when all residential lettings need to meet a minimum EPC rating of C. For many small landlords, finding the cash to upgrade their properties in today’s tough environment may be the straw that breaks the camel’s back.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
