New data from a recent survey conducted by Leaders Romans Group reveals a significant gap between tenant demand for energy-efficient rental properties and their willingness to pay for them. As the government considers new regulations requiring rental properties to meet an Energy Performance Certificate rating of C or higher, tenants overwhelmingly support these changes. However, most are reluctant to pay higher rent for these improvements.

The survey reveals that 80% of tenants are in favour of their properties being upgraded to an EPC rating of C or above, reflecting a clear desire for more sustainable homes. However, only 6% of tenants are willing to pay more rent to achieve these upgrades. This presents a significant challenge for landlords, especially in light of rising retrofitting costs and reduced government support for energy efficiency improvements.

One landlord told the firm: “Someone needs to point out to the government that if the minimum EPC is raised to C, landlords like me will sell up rather than spend £50,000 upgrading the property to meet this threshold. I simply can’t face the cost, so to be compliant with the law I will have to evict my tenants when that time comes.”