With new rules coming into force from 2025 for rental properties, landlords must make sure their property’s EPC rating is C or above, or risk not being able to take on new tenants.
As a result, around 17% of landlords have made a conscious effort to improve the energy efficiency of their property. With a further 23% of portfolio landlords also taking action to ensure their properties meet the criteria.*
Changes by landlords include: 22% that had replaced their boiler and heating system, 23% looked to replace windows and 18% had installed new white goods.
Common green home improvements also include improving insulation, fitting solar panels and replacing gas boilers with a more sustainable alternative.
With such changes being implemented to properties, many tenants have stated they would pay more if this was the case for their rental property.
One in 10 private renters have also said they would stay in their current property longer if their landlord made changes that would benefit the environment – a popular consideration now emerging in the lettings market.
However, the main concern is that for many older properties, updates like changing the boiler simply won’t be enough. As a result, more serious changes may need to be made, making the entire undertaking a costly job.
In some cases, landlords can look to gain support from both lenders and the government to make the changes financially feasible. The hope is that with landlords making the effort to better improve the EPC of their properties, more favourable terms on mortgages will become available to them.
This has caused several lenders to introduce ‘green’ mortgages, rewarding those landlords that have an EPC rating of ‘A’ or ‘B’.
Landlords already making changes have been welcomed by many in the industry, as a positive step towards making sure properties are compliant from 2025.
Are you a landlord and needing to make changes to your property ahead of 2025? Get in touch with us today to discuss your portfolio needs further.
*Shawbrook Bank
