Residential landlords in the UK are more likely to sell their properties rather than make the energy-efficient upgrades needed to meet the government’s new EPC ratings by 2025, according to a survey by York-based Green Building Renewables.
Its survey revealed that 63% of landlords in the UK are considering selling rather than making the energy-efficient upgrades necessary to meet the government’s new Energy Performance Certificate ratings in the next two years.
From April 1, 2025, the minimum EPC rating will be raised from E to C for new tenancies and for existing ones from April 1, 2028.
MD Chris Delaney said: “The results from this survey are startling. The fact that such a high percentage of landlords would rather sell their energy-inefficient properties than improve them with technologies like solar panels and heat pumps raises some significant questions for the government and policymakers.
“Eighty per cent of the buildings that exist today will exist in 2050; as a nation, we have a serious responsibility to transform our buildings and make them more energy efficient, and residential landlords have a critical role to play in this transition.
“The fact that so many were concerned about the costs suggests that something has fundamentally gone wrong in the messages and their understanding of energy-efficient upgrades. Improving the fabric of their properties and installing technologies like heat pumps should be seen as an investment and not a financial burden in the properties they own.”
Despite a range of incentives to upgrade properties, 41% of landlords anticipate spending between £5,000 and £10,000 per property, and more than a quarter expect costs to exceed £10,000. The perceived financial burden seems to be deterring landlords from seeing these upgrades as an investment in their properties’ long-term value.
According to the latest data from the Office for National Statistics (ONS), there were 3.4 million UK residential lettings in 2023. The data shows the average rent in the UK has been rising in recent years. In 2023, the average rent for a two-bedroom property in England was £1,098 per month, and the average rent for a three-bedroom property was £1,327 per month.
Philip Fellowes-Prynne, CEO of Green Building Renewables’ parent company Efficient Building Solutions, added: “We call upon policymakers, industry stakeholders, and the wider community to collaborate and explore innovative solutions to make upgrading properties as attractive a possibility as it is beneficial to the buildings and the UK economy.
“By developing robust financial incentives, streamlining bureaucratic processes, and implementing comprehensive educational campaigns, landlords should be empowered to embrace energy efficiency as a smart business strategy and a crucial step towards a greener future.”
