New energy regulations could force two out of three landlords to sell in the next five years
Two in three landlords could be forced to sell in the next five years because they fear they won’t be able to meet government environmental requirements, a survey found.
Landlords in England and Wales will soon be banned from renting out properties unless they upgrade them to an energy performance certificate (EPC) of C – the third most efficient category – or higher.
Failure to do so risks a £30,000 fine.
Last month, the government extended its previously proposed deadline by three years, from 2025 for newly rented homes to 2028, after warning the plan could drive out landlords.
Regulations: Landlords will soon no longer be allowed to rent out properties in England and Wales unless they upgrade to an energy performance certificate
But nearly two-thirds of them are still considering selling their home because they can’t afford the changes needed to meet the minimum level, according to a survey by the Bureau for Mortgage Advice.
Nearly a third of landlords say they are ‘extremely concerned’ about the cost of refurbishing their home, with another third saying they could pass the burden on to their tenants.
EPC ratings are the main metric used in the UK to judge how ‘green’ a home is. Your home is rated from A to G, with A being the most energy efficient.
Typical property in England and Wales has a band rating of D, according to the English Housing Survey.
At the moment, all private rental properties must meet a minimum energy performance of band E before they can be rented out.
Ben Thompson, of the Mortgage Advice Bureau, says the new rules will be welcome news for tenants as they will mean lower utility bills.
He does admit that it is a “confusing and worrying” process for landlords.
j.beard@dailymail.co.uk