Revealed - 27% of landlords unaware of their EPC rating

Specialist savings and lending bank, Shawbrook Bank, released a new report about landlord awareness of property Energy Performance Certificate (EPC) ratings.

The report shows 23% of the 1,000 UK landlords who were surveyed say the EPC rating of their properties is currently rated 'D' or below.

Upcoming changes to EPC require properties to be rated ‘C’ or above by 2025 to begin a new tenancy. While landlords with existing tenancies, have until 2028 to reach this target.

Nearly a quarter of landlords have 'D' grade EPCs

The Confronting the EPC Challenge report discovered that around 30% of landlords with properties built during the Victorian era were rated 'D' or below.  

Properties that were built a long time ago are more likely to receive a low EPC rating. This is because over time they require more upkeep and unless improvement work has been conducted, are likely to run using outdated systems and appliances.

A further 27% of landlords are unaware of their current EPC rating. This is a cause for concern as it indicates that perhaps more than 23% of landlords own properties that are rated 'D' or below.

If landlords do not improve their EPC rating to a 'C' grade by the proposed deadline it could limit supply and lead to unsellable properties. 

Landlords call for guidance with new EPC rules

Nearly half of the landlords who participated in the research said they would benefit from guidance on what the EPC legislation means for all landlords.

One-third of the participants suggest that assistance on how to phase the changes would help, 37% suggested that incentives such as favourable borrowing rates could help to make changes and 29% wish for signposting to suppliers who could help with property amendments, and a further 29% hope for guidance on how to manage tenants throughout the process.

Emma Cox, sales director at Shawbrook Bank, concludes: “Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords. The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.

“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.”

“It is in everyone’s interest that properties are made more energy-efficient, however, this cannot be done half-heartedly, and we must ensure sufficient resources are provided so that landlords can make the appropriate changes to benefit their properties and their tenants.”

“We hope that our forthcoming working group provides a space for landlords and the wider industry to share ideas and solutions to confront this challenge, and we look forward to sharing the findings in the coming weeks and months.”