Two-fifths of commercial landlords unaware of new EPC regulations – Handelsbanken

Just one in 10 commercial landlords has an EPC rating of E or above for all of their properties – despite legislation from April next year requiring all commercial rented properties in England and Wales to have an EPC rating of at least E in order to continue being let.

Around a sixth of commercial landlords surveyed said they are planning to sell their properties as they find the new EPC requirements too daunting.

Many say they cannot afford to make the changes to make properties more efficient. Almost three quarters need to upgrade their portfolios.

However, a swathe of landlords are taking steps to upgrade their properties, with 42 per cent planning to install insulation, while 36 per cent will invest in an energy efficient boiler.

A third say they will buy newer properties instead of older, less energy efficient properties. And a similar amount say they will fit double glazing.

The average investment per portfolio is expected to be £95,400, or three per cent of the portfolio’s total value.

‘Take a broader longer-term view of sustainability’

Richard Winder, UK head of sustainability at Handelsbanken said: “It is worrying that so many landlords declared themselves unaware of the April 2023 deadline, though there are signs many are taking action, for example by investing in double glazing and extra insulation.

“Although money is getting tighter right now, the rise in fuel costs and further planned hikes in energy-efficiency standards make carbon-reducing measures a smart investment for landlords and tenants alike.

“Landlords will want to start by consulting their existing Energy Performance Certificates, to find the most cost-effective route to a higher energy-efficiency rating.

“At the same time, we would guide them towards taking a broader, longer-term view of sustainability, for instance by considering a property’s resilience to heatwaves or severe weather, and how it might better support green transport choices and biodiversity.”

Earlier this month, Mortgage Solutions reported that upcoming legislation on EPCs for rental properties could force some landlords to sell properties in the short-term.