70% of landlords own rental properties with D-grade o...

Despite Energy Performance Certificate (EPC) changes slowly creeping up, the majority of landlords still have low ratings.

If landlords do not comply with the changes ahead of the proposed date, they could be at risk of facing fines.

According to new research by Shawbrook, seven in 10 UK landlords still own rental properties with an EPC rating of D or below.

The findings are part of Shawbrook’s second EPC report. The EPC challenge, the knowledge gap, the role of government, and the role of the cost-of-living crisis in driving change are analysed in the report.

Failure to meet the C-grade target

Only a quarter of landlord portfolios include homes that all meet the C-grade energy efficiency target. The research also shows that 38% have properties that are rated D or below.

Raising the average property up to a C-grade is estimated to cost nearly £2,000. This cost could in fact be higher as there is a concern that the cost of labour and materials are increasing.

The Shawbrook report also shows that 9% of landlords with an active mortgage have at least one property rated D or below. These figures perhaps signify the need for more lenders to help reach these targets that will be implemented in April 2025.

A part of its commitment to sustainability in the rental sector Shawbrook is offering EPC related discounts.

Emma Cox, managing director of Real Estate at Shawbrook, said, “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan.”

“Landlords should know that they are not alone in this. Lenders, including Shawbrook, are working hard to help drive awareness of regulatory change, support with creative product options, and offer practical support to customers and partners. Standard products like bridging finance can also play a role in securing the future of the sector.”

“During such a challenging period for the UK in general, we remain committed to bringing together all industry stakeholders to develop the conversation around EPCs, and to make real progress towards our shared goals”.