Almost half of brokers feel unconfident advising on incoming EPC legislation

Mercantile Trust research, which surveyed around 150 brokers, suggested the regulation, which is currently on its second reading in the House of Commons and 10 stages away from becoming law, new tenancies will need an EPC rating of C or higher by 2025 and all tenancies would need to meet this standard by 2028.

The research showed that 60 per cent of brokers have not arranged a bridging loan to finance energy efficiency-related refurbishments over the past year but two thirds said that they would do more business in this area in the next year.

Mercantile Trust has brought out a EPC Hints and Tips guide, in partnership with Elmhurst Energy, as a resource for landlords and property investors.

The guide aims to help landlords create a plan of action, so outlining what needs to be done to each properties to get to an EPC rating of C and what financing options could be used.

It includes basics of EPC ratings, benefits and advantages, funding EPC improvements, opportunities and help and assistance.

More education needed but ‘insightful’ ideas are out there

Speaking to this publication, Maeve Ward (pictured), director of commercial operations at Mercantile Trust, said that the research showed that brokers felt there wa “still a lot that needed to be learnt to ensure that [brokers] are prepared by 2025”.

“There’s a lot more education that needs to be done in the industry as a whole, to make sure that brokers have the tools to be able to better inform the consumers and then it needs to be made as readily available as it possibly can be between now and then because, ultimately, nobody wants to get to the deadline suddenly have wake up one morning and go actually I need to do something, and be fearful that they could be fined £30,000,” she explained.

Ward added that the research showed that brokers wanted to see more reduced rates, which the market had stated to provide for energy efficient properties, but other suggestions around second charges, drawdown facilities or lenders supporting rental voids to allow work to be done were all “insightful” suggestions.

She continued that more lenders “need to come together” and be “more vocal…as a community” on these issues and this would help the mortgage sector become “better informed”.

Ward urged brokers to contact lenders if they were uncertain about EPC legislation, or wanted more information.

“If there are things that brokers don’t know, don’t be afraid to ask. That’s my key thing, don’t be afraid to reach out to any lender if you are unsure about what this all means because every day is a learning day and lenders are there to help and genuinely want to help you,” she noted.

Ward concluded: “The better informed you are, the better the outcome for the consumer and that absolutely has got to be the objective.”