There is a gulf in the amount that landlords are willing to pay to meet proposed new EPC requirements and what it is likely to cost.
A survey of landlords, carried out on behalf of Paragon Bank, has found that just over three quarters of landlords (77%) are willing to spend up to £3,000 to upgrade each property they own to EPC C in order to meet new regulations proposed by the Government. Further analysis by the specialist mortgage lender reveals that 78% of landlords would need to spend over this amount.
Considering the Government’s proposed cap of £10,000 per property, the average cost to upgrade each property to EPC C is £10,560, according to Paragon’s analysis.
The findings were published in a Paragon report titled: The rental sector energy challenge, which examines the potential impact on the private rented sector of proposed regulations that, if passed into law, will require all properties let for new tenancies to be rated EPC A-C by 2025, extending to all tenancies by 2028.
The proposals may also influence investment in buy-to-let property, with just over two thirds of landlords (68%) surveyed stating that they are less likely to purchase homes with EPC ratings of ‘D’ or lower in the future because of the potential regulations.