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Most landlords ‘behind’ on energy efficiency improvements - claim

A survey of over 600 landlords by a business insurance service has found that 55 per cent have still to make improvements to their properties to enhance their energy efficiency.

As most landlords know, those in England and Wales can only let properties that have a minimum Energy Performance Certificate rating of E. 

As part of the Minimum Energy Performance of Buildings Bill, the government is considering increasing the minimum EPC requirement to C for all new tenancies by 2025 and for all existing tenancies by 2028.

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Simply Business, which conducted the survey, says that if the minimum EPC rating for rental homes is indeed increased, 55 per cent of the respondents said they would need to improve their properties to make them more energy efficient.

Almost a third of landlords regarded making properties energy efficient is a key challenge, while one in six said they were worried about their ability to maintain their properties.

The survey revealed that changes to minimum energy efficiency standards are likely to cost landlords a significant sum of money.

Around a fifth estimated that they’ll have to spend over £10,000, and a quarter anticipated spending between £5,000 and £10,000.

Improvements that can increase a property’s energy efficiency include cavity wall insulation, solar panels, and double glazing.

Meanwhile, the government recently announced the details of a Boiler Upgrade Scheme, allowing landlords to claim £5,000 towards the cost of an air source heat pump.

Simply Business cites two landlord respondents to its survey.

First off is Chris Clegg, a buy-to-let landlord in the North West who owns a portfolio of five properties nationwide. He says: “The new regulations and licensing are coming too hard on the heels of the pandemic. I've temporarily lost money so cash is very tight. Then I have to spend thousands on licences, and thousands more on EPC efficiencies. It’s very close to impossible.”

And secondly Jeremy Wadley, who owns multiple properties in Bristol and North Somerset, adds: “If the EPC changes come into force, I am concerned about the costs. If I'm raising from an E to a D, then I would be happy with this as costs per property will reach approximately £500, but if it’s raising to a C, then predicted costs are £5,000 per property. On top of losses from the pandemic, increased taxes, increased regulations… it’s unrealistic.”

 

Alan Thomas, the chief executive of Simply Business, comments: “With a potential 2025 deadline for a new minimum EPC rating fast-approaching, our study has revealed the worries facing landlords who will need to make drastic and costly improvements to increase the energy efficiency of their properties. 

“The rising cost of living is having an impact on us all but with the prospect of tighter EPC rules on the horizon, landlords are feeling the squeeze. Many are concerned about how they’ll fund these improvements and whether they’ll be completed in time. 

“This is putting significant financial pressure on landlords and, with a fifth already concerned about their properties' ability to generate revenue, this could be a real threat to the rental market.

“Insuring over 300,000 landlords has offered us a fresh perspective on the significant role they play in providing safe and affordable housing, in addition to the £16 billion annual contribution to the economy. Therefore, it’s important they receive the necessary support, education, and clarity to meet the requirements set by the government.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    I'm not doing anything, as my properties come empty after the 2025 dead line I will then consider whether to carry out the works or sell on a one by one basis, those that are tenanted at the 2028 dead line the tenants will be evicted as I then also consider whether to up grade or not , don't push me into a corner, it won't work.

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    If there was a solution that didn't cause damp issues and didn't ruin the appearance of the property I'd consider it. Meanwhile I'm thinking of selling up instead.

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    The fact that these proposals are just that makes it pointless for most LLs to do anything at this point. We are also waiting for an algorithm update on the EPC assessment so anything we do is based on guesswork.

    If the Govt is serious about improving the EPCs in the PRS it needs to give us clear information, a transparent & accurate assessment process & a confirmed timescale. Until we have these it is impossible for LLs to know what they need to do.

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    As usual Tricia you have hit the nail sqarely on the head!
    At the moment EPC assessors are making assumptions which are at the discretion of the individual assessor with regard to insulation etc and cannot tell us how many points any improvement will be worth. Until the process is accurate and consistent and assessors can give a points value to each and any improvement we are working in the dark.

     
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    I totally agree with the points you have both made and it is why I made the decision to do nothing until I 'know where the goalposts are'.

    Normally when new measures are introduced I like to be ahead of the game but on this one it's impossible.

     
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    Paul Holmes...
    The future changes to the algorithm are an issue but the assumptions and upgrades aren't an issue.
    As long as you document the work done as you go along, with photos evidence and invoices etc...then they won't be making assumptions for the updated EPC. Do that with the EPC assessor on board to make sure they're happy with how you document everything.
    Regarding planning your work....as long as you engage with the assessor who carried out the current EPC they can simulate your proposed changes and give you the resultant outcome.
    I'm doing exactly this right now and its working fine.
    If you can't get the original assessor all you have to do is get a new EPC now, then get them to run the proposals and make sure you use them for the updated EPC.

     
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    We are not "behind" on energy efficiency improvements, we are unclear what is required. The move to an EPC C is a proposal and EPC are having an algorithm update. So we are waiting to see what is required, then the decision will be made - update or sell.
    Graham Norwood yet again you have written an inaccurate piece as I think you will find the Government is behind in informing LLs what they want, expect or require. We are just waiting for clear instructions.

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    Totally agree with both Sandra and Tricia’s point, four of our properties do not currently meet the proposed new regulations, however why begin spending unnecessary money when it is merely a proposal at present and nobody can give us any guidelines as to what we need to do, add in that our local council, Sheffield, has no idea as to whether there will be any grants made available ( which we may miss out on if we act to early…).

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    I like a lot of others that are not doing anything yet because at the moment as the EPC change is just a proposal and EPC software is having an algorithm update. So I am waiting to see what is required. I have contacted the company who does my EPC and they can’t give me any guidance until they get the software update. So I will make decision to upgrade or sell when I get the information to make a decision.

  • Reaper Cushions

    I came here to say exactly what Sandra and Robert just have. Please can everyone just calm the #£@& down. I’ve seen so many comments that EPC ‘C’ is coming in 2025 as if it’s already passed through the legislative process. The same applies to the abolition of S21.
    Neither of these things have actually happened yet and there is no clarity around what is expected to happen or when. Once again the government is failing both us and our tenants while churning out soundbites. Judging by this article, even our supporters aren’t helping.

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    If the government included the social sector in all this I would take them more seriously…… I have done nothing and will not be doing. I am very likely to sell and enjoy the gains, let the local authorities deal with the swath of homeless.

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    Johnso slammed the EU exit bill straight after Xmas without any debate, and any contentious legislation is also suddenly rushed through. Monstering landlords is making it virtually impossible to get any support from the various authorities.

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    Reaper. I suppose when they are talking about it, it may as well be already passed just like Section 21.

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    What will happen when EPC C is law, maybe with little notice, and all the tradesmen are booked up for months?

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    Then tenants will be evicted onto the streets as it will be illegal to rent to them while houses will sit empty awaiting works, what will councils and government be doing then to house all those homeless families, shot in foot comes to mind.

     
  • George Dawes

    The government will take them off you then let them out as epc twaddle doesn’t apply to them

    Democracy 😂

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    We have a small portfolio of properties - none of which have a C rating. In some cases it would take up to 5 years to recoup the outlay. In some cases, for instance where the building have stone walls, we are not even sure if there really is a practical affordable solution.
    We acquired this portfolio to supplement our pension and now it looks like we will need to use our pension to support the portfolio! We are concerned that the likely abolition of Section 21 might lead us to a position where we cannot re-possess our properties to sell them and can't afford to upgrade them. We might be able to sell them to another landlord but who will want to buy them if they have to spend so much. Catch 22!

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    Issue sec 21 on all of them today, that way you have covered your back, and tell the tenants why

     
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    I am pretty sure they will have to allow landlords to give notice in order to sell the property. If for no other reason than lenders won't lend on property that can't be sold, so it would cause the collapse of the sector.

     
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    Alan, l think that's the idea This government is behaving like a communist government.

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    None of their business whether we want to Sell, Let, keep or rise it to the ground, we didn’t need or require their opinion, advice or get any financial support from them when we bought, what now gives them the right to call all the shots. Its private leasehold / freehold Property.

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    Didn't go very well with Greenfel tower, did it ?

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    Shelters CEO’s Polly Neate is doing rather well on the back of LL bashing. From what I remember she took over from Campbell Robb previous basher starting on £126k pa who moved on to greener pastures on 158k pa at that time, now I read she’s on £132k pa. 6k increase lovely income from a Registered Charity, if you are genuinely concerned about the under privileged you Services should be almost free, many of the poor only have 6k pa to live on.

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