Landlords already spent thousands on scrapped EPC regulation
Nearly half (46%) of landlords spent between £500-20,000 on improving or investing in their property in the last year, before Prime Minister Rishi Sunak suddenly decided to scrap proposed EPC legislation last week.
The mean average amount landlords have spent is £25,148, which rises to £37,164 for London-based landlords, Shawbrook research shows.
It was planned that landlords would have to bring their properties up to a minimum EPC rating of C by 2025 for new tenancies and 2028 for existing tenancies.
Emma Cox, managing director of real estate at Shawbrook Bank, said: “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties.
“But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans.
“Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”
Some 80% of UK landlords said they were already preparing for the 2025 EPC regulation deadline. Of these landlords, nearly a third (30%) said they already achieved a rating above C, while half (50%) had plans to improve their EPC rating before 2025.
A fifth (20%) said that cost of labour for property improvements was a key concern for their rental properties over the next six months, while 16% said EPC regulations were a concern.
The proposed regulations have also prompted many landlords to be more energy conscious when investing in new property, with over a quarter (28%) prioritising buying newer, more energy efficient properties in the next six months.
When asked about previous rumours of the initial EPC regulation deadline moving to 2028, 31% said it would give them more breathing space to complete improvements across their portfolio, while 29% said they will progress with their improvement plans regardless.