A new survey reveals that rental properties with an EPC rating below C are already more difficult to sell to other landlords, despite uncertainty over when strict energy efficiency rules kick in.

A survey for Foundation Home Loans reveals that 71 per cent of almost 1,000 landlords who responded said they were unlikely to buy a property which has an EPC rating of less than C – for portfolio landlords in particular, there is even more suspicion of low EPCs. 

Fewer than one in five felt that the EPC rating would not be a key factor in deciding what they would buy and when.

The English Housing Survey says that in 2021, of the nine million PRS households, some 44 per cent were band A to C, 42 per cent on band D while the remaining 14 per cent lived in homes with a band of E to G. =

“While we still might be waiting for certainty and clarity over when the Government is likely to introduce its minimum EPC Level legislation for the private rental sector, it’s clear from this research that landlords are aware of what is likely to be coming, and are thinking seriously about their existing portfolios, how they might fund improvements, and what their plans might be when this is introduced” says Grant Hendry, sales director at Foundation Home Loans. 

“With landlords anticipating a cost of over £10k per property to improve its EPC Level to C, it is perhaps not surprising they are disinclined to buy properties already below this. In effect, they are future-proofing their portfolios by opting only to buy C and above properties now, while they will presumably focus on those properties within their portfolio which are not currently at this level.”