Oct

Tenants avoiding rental homes with high energy bills as cost of living bites

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Renters are spurning energy-sapping homes as a new survey shows 58% would now be less likely to consider those with an energy rating of D or below.

The rising cost of living is driving a shift towards energy efficiency improvements in the PRS, according to new research from Shawbrook, which found that it had prompted more than half (54%) of landlords to carry out work in the last six months.

Nearly two-thirds (63%) had brought forward upgrades in the hope they could avoid further price rises.

It’s widely expected that landlords will have to meet a minimum EPC standard of C for all newly rented properties in England and Wales by April 2025 and for existing tenancies by 2028.

But Shawbrook’s research reveals that while 78% of landlords have heard about the government’s plans, more than a third know only ‘a bit’ about the changes.

Shawbrook real estate MD Emma Cox (pictured) says 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,” says Cox.

“Only by working together can the industry play its part in safeguarding the future of the private rented sector.”

Potential burden

Chris Norris, NRLA policy director, adds: “The investment required in our housing stock represents a potential burden for many landlords that they are highly unlikely to be able to shoulder alone, without significant changes to the tax system and some form of financial assistance along the way.”

Shawbrook offers an energy efficiency discount for new buy-to-let mortgage customers and has plans to roll out further support for those needing to make improvements to their properties in the coming months.

Read more about EPC changes.

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