Rental sector sees a significant rise in energy effic...

New research from Shawnbrook reveals that there has been a major increase in energy-efficient improvements.

The specialist financial services company claims that nearly three-in-five (58%) of renters say they would be less likely to consider a property D or below EPC rating.

The research also shows that 54% of landlords have made efficiency improvements in the last six months. A further 63% have brought forward upgrades because of inflation.

EPC standards change

It has been speculated that new measures regarding EPC rules must be met by April 2025. These will change minimum EPC standards to a C and apply to existing tenancies from 2028.

Shawbrook’s research shows that 78% of landlords are aware of the proposals. Three-quarters 75% of mortgage brokers are concerned their buy-to-let clients don’t know enough about the changes.

Nearly two-thirds of landlords shared plans of selling their properties because of the EPC changes.

Landlords should be aware of the schemes and discounts that are available to meet these targets.

Shawbrook offers an energy efficiency discount for new buy-to-let mortgage customers, This discount is of up to 60bps on their arrangement fee for properties with A-C grade EPC ratings. For new mortgages on properties where the EPC rating improves to at least a C, customers can apply for a partial refund of their arrangement fee, plus the cost of the new certificate (up to £100).

Emma Cox, managing director of real estate at Shawbrook, concludes: “Whatever happens with the government’s proposals, it’s clear that landlords need to be thinking about making energy efficiency improvements to safeguard their rental properties.

“As well as the need for clarity from policymakers, the industry has a significant role to play in supporting landlords. Only by working together can the industry play its part in safeguarding the future of the private rented sector.

“As a specialist lender, Shawbrook has been developing finance discounts to help landlords improve their properties – rewarding those with properties that are up to standard and incentivising those who need to make upgrades.

“We’re committed to building on the findings of this research – and the conversation around it – to developing new solutions to drive the sector forward.”