More than half of landlords have made energy efficiency improvements to their properties in the last six months, specialist financial services company Shawbrook has reported.

In part a response to rising energy costs, the need for energy efficiency is seen as an additional landlord burden, according to Confronting the EPC challenge: The path to a sustainable rental market,  Shawbrook’s second white paper on energy performance.

It found that six in ten renters now say they would be less likely to consider a property with an energy rating of D or below. 

Landlords have responded with a similar proportion bringing forward energy efficiency upgrades. Many have done this in expectation of a legal requirement for rental properties in England and Wales to meet a minimum ‘C’ EPC rating by April 2025. The measure would apply to existing tenancies from 2028.

The financial challenge of upgrading rental properties and other legislative burdens may, say two-thirds of landlords, cause them to sell their properties in the next five years. These pressures are already having an effect, with nearly four in ten buy-to-let mortgage brokers saying they have witnessed client withdrawals from the market due to energy efficiency improvement worries.

‘Whatever happens with the Government’s proposals, it’s clear that landlords need to be thinking about making energy efficiency improvements to safeguard their rental properties’, warned Shawbrook managing director of real estate Emma Cox. 

‘As a specialist lender, Shawbrook has been developing finance discounts to help landlords improve their properties – rewarding those with properties that are up to standard and incentivising those who need to make upgrades’.