There’s been a backlash from the mortgage industry following Prime Minister Rishi Sunak’s Eco U-turn last week.
In recent months a growing number of lenders have tailored products for landlords in particular, faced with the threat of higher minimum EPC ratings which will now not happen.
Market Financial Solutions chief executive Paresh Raja believes the U-turn will trigger anger.
“Looking specifically to the scrapping of the impending EPC regulations, we have to acknowledge what a complex issue this is.
“Many landlords will breathe a sigh of relief that there is no hard deadline for them to upgrade D-or-below related properties. Tenants may also benefit – rental prices might have risen in order to cover the costs of landlords upgrading their properties.”
But he anticipates bitterness from many landlords will have already improved the energy efficiency of their properties at great expense.
“Moreover, the next general election could result in the winning party reintroducing new EPC rules anyway, so the decision brings further uncertainty into a property market that would benefit from greater stability.
“Meanwhile, there are some renters who will worry about living in properties with poor energy efficiency – their bills this winter will reflect that”.
Mortgage Advice Bureau deputy chief executive Ben Thompson says the reality is that the UK will still need to upgrade its poor housing stock.
“With energy bills in the spotlight, EPC ratings are climbing up prospective buyers’ wish lists, and if the housing market is to meet net zero targets, properties need to be retrofitted.
“The UK has some of the oldest and least efficient homes in Europe, and backtracking won’t help solve the overall problem – it simply serves as kicking the can down the road.”