Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Landlords Face Significant Costs to Meet EPC Rules
Landlords are facing an average bill of £11,713 per property to carry out upgrades needed to meet proposed energy performance certificate (EPC) requirements, according to research from Pegasus Insight. The research found that 60% of landlords own at least one property that is below the proposed minimum EPC rating of C.
Of those landlords with properties rated below C, 62% plan to carry out the necessary improvements, which is a 13% increase compared to the previous quarter. More than two thirds of landlords expect to use savings to cover at least some of the costs, but many are also exploring alternative funding options.
Almost a quarter of landlords hope to access government grants or support schemes, while others expect they will need to borrow more through further advances or by releasing equity. The findings indicate a significant funding requirement as landlords look to lenders for support.
Separate tenant trends research from Pegasus Insight found that 44% of renters consider EPC ratings an important factor when choosing a property.
These findings are relevant for UK letting agents and inventory clerks, as the drive towards higher energy standards may impact property management, tenant preferences, and the need for accurate documentation of property upgrades.
Source: Mortgage Strategy