A report from a government department is critical of the ‘one size fits all’ approach to the energy efficiency rating system. And a survey conducted by a bank shows many landlords are unaware of the minimum EPC ratings for rental properties set to be introduced in 2025.
A report from the Office for National Statistics states that the government’s ‘one size fits all’ approach to the energy efficiency rating system is not appropriate for the PRS.
The reports highlights the age of a property is the key factor that determines energy efficiency, ahead of fuel type and property type. This is attributed to building techniques and regulations changing over time and the impact of wear and tear.
Currently, more than half of assessed homes in both England (58 per cent) and Wales (63 per cent) have an Energy Performance Certificate (EPC) rating lower than C which will be the minimum requirement for new lettings from 2025. However, from 2025, all newly let properties must have a mininum EPC rating of C and existing tenancies will have until 2028 to comply with the new rule changes.
Timothy Douglas ,Propertymark’s policy and campaigns manager, says: “The UK government must take these findings seriously and understand the huge challenge that many landlords face to upgrade property which introduces a real risk of many exiting the sector. To navigate this, they must provide funding and support based on much broader considerations.”
At the same time the ONS report was released, a recent survey of 1,000 landlords, by Shawbrook Bank, shows only 15 per cent are fully aware of the proposed changes to laws surrounding Energy Performance Certificates in the private rental sector.
The bank’s sales director ,Emma Cox, states : “The true extent of what this legislation could mean for the market has not yet been properly realised. Inaction could see a considerable percentage of the private rental sector declared unrentable or unsellable within a matter of years if landlords don’t take important steps now.”
“Putting off making necessary changes could leave landlords exposed to extended void periods when their property can’t be rented out while works are being completed.”
“Our research indicates a clear gap in landlord’s understanding of how the changes will impact them and their current yields. As well as these risks to landlords, renters may also be put in an even worse position as they compete for a smaller number of properties that are rated C or above after the 2025 deadline.”