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Energy Efficiency - landlords shun older homes as EPC targets loom

The draconian new rules governing EPC targets are driving some landlords to favour new build properties when expanding their portfolios.

That appears to be the case according to new research from lettings agency Hamptons which says its research suggests a significant switch to newer properties by landlords.

These newer units are a Band C or better in terms of EPCs.


Since 2008 landlords letting whole properties have had to have a valid EPC rated at E or above to provide to prospective tenants. 

EPCs are valid for 10 years. After this time, landlords are only required to get a new EPC if they are re-letting to a new tenant.

However the government proposes that rental properties meet a compulsory energy performance certificate rating of band C on new tenancies by December 2025, and on all rented properties by December 2028. 

Hamptons says 50 per cent of properties bought by landlords so far in 2022 have an EPC rating of at least C; this compares to 39 per cent in 2021 and 33 per cent in 2020.

“Given it will prove impossible for all homes to secure an EPC rating of at least a C without significant cost, it’s likely to mean older homes will become considerably less attractive to landlords” says Aneisha Beveridge, Head of Research at Hamptons.


“By removing the least energy-efficient rental homes from the market, government policy has already picked the lowest hanging fruit. 

“But extending this plan to upgrade homes with a D or E rating up to C will impact a far larger number of households, while generating smaller savings for tenants.

“The policy will mean that the average tenant will eventually pay lower energy bills than the average homeowner, although it’s likely to remove some rental homes from the market, putting further pressure on stock levels.”

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  • George Dawes

    Designed to destroy…

    While in other news …

    Big banks are pumping billions into new oil and gas production despite net zero pledges, campaigners have said.
    Banks including HSBC, Barclays and Deutsche Bank are still backing new oil and gas despite being part of a green banking group, ShareAction said.
    Investors should force banks to demand green plans from fossil fuel firms before funding them, it said.
    HSBC and Barclays said they were focused on achieving environmental goals.
    "Net zero" means not adding to greenhouse gases already in the atmosphere by cutting and trying to balance out emissions.
    If the Earth is to avoid damaging environmental effects, including more extreme weather, it needs to limit average global warming to below 1.5 degrees centigrade.

    Couldn’t make it up

  • icon

    This sounds sensible to me, if I were buying a BTL now I would do the same…… but I am not, so my excellent and long standing tenants will be evicted in 2026 and my EPC D rated properties will be owned by FTB”s, the overall energy efficiency of my dwellings will not change a jot, but the local council will have 2 families knocking on their door needing to be housed. I of course will be fine, as a landlord I have options that my tenants do not. Every time any government involves itself in the housing market…… disaster often follows. My popcorn is at the ready and I am waiting for the fireworks.

  • icon

    I cannot see many landlords buying over priced new builds, what would the rental yield be ?

  • icon

    My victorian properties are generally much cheaper to rent than the equivalent modern house, with bigger rooms too. They will all be sold because of EPC removing choice for renters who will be forced into expensive little boxes whether they like it or not.

  • icon

    When I was young, we used portable insulation which could be put to use in whichever ( unheated) room we were in, or even in the shed or out in the street.

    We called such insulation suitable clothing, warm vests, long sleeved shirts and woolly jumpers, augmented by duffel coats in really cold weather.

    Nowadays many people go around in shorts and tee shirts all year round, but complain about the high cost of energy.

    The younger generation accuse us of destroying the planet but need server farms and data "clouds" burning as much energy as Norway whereas we used photo albums and vinyl records to store our photos and music, wIth audio cassettes to listen to on the move.

    Which generation is the "greenest?"


    The ''duffel'' coat, I was issued with one of these when I started a job at Eastern Electricity (nationalized industry) in 1975, marvelous bit of kit .

  • Theodor Cable

    Not to mention Afghan coats with hairy wool collars - And they stank like sh*t.........

  • Bill Wood

    In our own house, built in 1905 and with solid walls, there was one upstairs corridor wall that was always cold to touch.
    I hum'ed and ha'ed for 22 years about what to do with it, until last year I bought some ErfurtMav (am I allowed to say the make?) insulating wall panels, stuck them on, and painted with emulsion.
    Don’t know how much actual insulation they provide, but the wall in now warm to touch, and looks great.


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