Landlords across the UK are calling on the government for financial support to meet new Energy Performance Certificate (EPC) targets, as concerns mount about the feasibility and costs of reaching these goals.
Landlords express concerns over new EPC regulations
New research from Shawbrook reveals that 78% of landlords are worried about the new EPC regulations, which require rental properties to achieve a minimum rating of C by 2030. Nearly a third (29%) of landlords said these targets would only be realistic with government assistance, while 16% admitted they would struggle to afford the necessary upgrades.
Furthermore, a quarter of landlords indicated that they might sell properties requiring extensive improvements rather than invest in costly renovations. However, some landlords are already ahead of the curve, with 21% having made changes to boost their properties’ energy efficiency before the previous government scrapped similar targets.
Professional landlords more proactive in making upgrades
The research highlights that professional portfolio landlords—those with four or more properties—are more likely to have already invested in energy efficiency improvements. In contrast, landlords with smaller portfolios have been less proactive. Shawbrook’s earlier research in 2022 found that over half of landlords had begun making efficiency improvements, but many halted their efforts when the previous government’s targets were abandoned.
Emma Cox, MD of Real Estate at Shawbrook, stated: “Our experience has shown that landlords overall are motivated to improve their properties. In 2022, many took steps to do so in response to demand from their tenants and the government’s then-targets. However, when these targets came into question during a period of significant economic headwinds, many chose to hold off on costly renovation projects. With these targets back in place, landlords now must play catch-up.”
Rising energy costs and tenant demand driving change
With energy prices continuing to rise, tenant demand for energy-efficient properties is expected to increase. However, landlords face rising costs of materials and labour, adding financial pressure to meet the 2030 deadline. The English Housing Survey estimates that 12% of the private rented sector is currently rated between E and G, highlighting the scale of the challenge.
Cox added: “It’s encouraging to have greater clarity from the government, which will allow landlords to plan in the run-up to 2030. However, it’s clear that support from both the government and the industry will be essential. The cost of improvements is consistent across the country, but the impact is disproportionately higher for landlords with lower-value properties, making investment more burdensome in regions like the North compared to London.”
As the UK’s private rented sector continues to play a critical role in housing provision, landlords are urging the government to provide financial support to ensure a smooth transition to energy-efficient homes, benefitting both tenants and the broader housing market.
