EPC targets could lead to a shortage of rental properties as landlords would rather sell up than make costly changes to existing properties despite energy savings.

New research from Green Building Renewables has revealed that six out of 10 landlords would rather sell their properties than improve their EPC ratings by 2025. At the moment, from 1 April 2025, the minimum EPC rating will be raised from E to C for all new tenancies. This will be enforced from 1 April 2028, for existing tenancies.

However, while less than half of landlords feel fully prepared for the EPC changes and seven out of 10 (69%) say they will have to spend at least £5,000 on upgrading each property (with a similar amount concerned about how to finance it) Michael Gove offered worried landlords a glimmer of hope this week when he called for a delay to these rented housing energy efficiency plans.

Responding to the suggestion of a delay to the energy efficiency plans by the Housing Secretary, Ben Beadle, chief executive at the National Residential Landlords Association, said: “It is over two years since the Government completed its consultation on energy efficiency standards in rented homes. As a result of the delay in responding to this, there was never any hope of meeting the originally proposed deadlines, as we told the Minister earlier this month.

“The NRLA wants to see properties as energy efficient as possible, but the sector needs certainty about how and when this will happen. Ministers need to develop a proper plan that includes a fair financial package to support improvements in the private rented sector. We will continue to work with all parties to develop pragmatic and workable proposals.”