New research from bridging specialist and buy to let lender Mercantile Trust reveals an apparent lack of awareness among brokers and property investors of proposed changes to Energy Performance Certificates.
Mercantile spoke with over 150 brokers and found that 48.5 per cent were not confident that they fully understood the government’s proposed new rules regarding EPCs for rental properties.
In addition 49.2 per cent said their property investor clients had not asked them for any information on the EPC regulatory changes.
The changes to Energy Performance Certificate requirements are due to come into force in 2025, when all properties covered by a new tenancy agreement will need an EPC rating of C or above. All rental properties will need to meet this standard from 2028. Failure to comply risks a fine of £30,000 per property.
There has been speculation that the government may delay implementation but, so far, no confirmation has been received.
The Mercantile research also reveals that 60 per cent of brokers have not arranged a bridging loan to finance energy efficiency-related refurbishments over the past year but that 66 per cent predicted they would do more business in this area over the coming 12 months.
Maeve Ward, director of commercial operations, says: “The new EPC regime for landlords is fast approaching and our research has found that brokers are seeking education and clarification around this important issue.
“Working with Elmhurst Energy, we have produced our EPC guide because everyone in the industry needs to play their part in meeting the demands of the changing regime surrounding energy efficiency. We encourage brokers to download the guide and share it with their property investor clients.
“The key message to brokers and their clients is that doing nothing is not an option. Our guide provides all the information they need to create a viable strategy to deal with the EPC issue, including outlining how landlords can finance improvements to rental properties. Bridging lenders such as Mercantile Trust have already been funding energy efficiency-related refurbishments and are ready to meet the inevitable increase in demand. The main thing is to not delay any further.”
