A key body in the UK property market has expressed concerns over the government's plans for EPCs and their consequences for our industry.
Property investors have been in the dark over various governments’ plans for Energy Performance Certificates (EPCs) in the private rental sector for years. Now, as Labour promises to implement the 2030 target, we’re still just as clueless on the details, cost caps, and exemptions.
UK Finance, the trade body for banks, is now the largest group to come forward with its concerns and issue a warning to ease the targets.
The true threat to the buy to let market
UK Finance cautions that mortgaged landlords will not achieve the target of EPC C or above until between 2037 and 2043. The consequence? Many rental properties, which tenants rely on, will be left unmortgageable and unable to be let out for nearly a decade after the 2030 target.
Consequently, UK Finance has warned that many landlords may be driven to quit the market if the targets remain unchanged, posing a serious threat to the rental sector.
For many landlords, it’ll only be possible to complete necessary works between tenancies. However, with the Renters’ Rights Bill coming as early as this year, Assured Shorthold Tenancies (ASTs) will be replaced with periodic tenancies, meaning changeovers between tenants will be far less frequent.
The official statement from UK Finance
“We therefore recommend abandoning the proposed 2028 deadline for new tenancies.
“The timescale is challenging and overly ambitious, particularly if many properties cannot be improved on time in an economically viable and cost-effective way. Achieving the 2030 deadline for all tenancies will depend on landlords’ understanding of what improvements need to be made to achieve the standard.”
It adds: “We believe that a requirement for large up-front investments, due to a disproportionately high cost cap, may result in some landlords leaving the sector or rationalising portfolios. This would simply shift the problem into a different tenure, without resolving the key issue.”
Getting started with EPCs
EPCs remain a considerable challenge for landlords, from how the assessments are changing, to how landlords plan to meet the new regulations.
Our expert brokers can help you explore different finance options to help you complete the necessary works.
Next Steps
To get started. Call us on 0345 345 6788 or submit an enquiry here.
