A recent survey of property professionals, including surveyors, landlords, investors, and developers, has overwhelmingly criticised the UK government’s Energy Performance Certificate (EPC) target as unachievable. The mandate, announced in July, requires rental properties to meet an EPC rating of C by 2030, but many in the industry believe this is unrealistic.
Industry voices concern over feasibility
The survey, conducted by the property consultancy Landwood Group, gathered opinions from 21 individuals, nearly all of whom agreed that the government’s EPC target is unattainable. Mark Bailey of Landwood Group, who spearheaded the survey, expressed concerns about the practicality of the initiative. He stated, “This so-called ‘green’ initiative might look good on paper, but it’s built on shaky foundations.”
Bailey highlighted the challenge of upgrading older private rental properties to meet the new standards, noting, “The focus on improving modern social housing overlooks the vast majority of Britain’s private rental properties which are ageing and would require significant, costly upgrades to meet the EPC C standard.”
Financial strain on landlords
Achieving an EPC C rating is seen by many landlords as nearly impossible without substantial financial outlay. Previously, government subsidies helped ease the burden of upgrades such as heat pumps and insulation. However, with the removal of these incentives, landlords are now faced with difficult decisions. Bailey warned, “Now, landlords have little choice but to sell or raise rents to cover these high costs.”
This situation has reportedly led to an increase in landlords selling their properties, either individually or in large portfolios, as they struggle to meet the new requirements.
Potential impact on tenants and the housing market
The consequences of this policy could extend beyond landlords to renters, with Bailey cautioning that, “As landlords are forced out of the market, tenants will face fewer housing options and higher rental prices.” He stressed that while energy efficiency is important, especially with rising energy costs, it is essential that the government also addresses the broader housing crisis.
Bailey concluded by stating, “The Government needs to address the housing crisis before imposing such stringent requirements. As it stands, this policy risks doing more harm than good.”
As the 2030 deadline approaches, the tension between environmental goals and housing affordability is likely to intensify, raising questions about how best to balance these competing priorities.
