One quarter of private landlords plan to sell their properties needing energy upgrades due to the government’s ambition for the sector to reach EPC targets by 2030.

Following the announcement that all properties will need a C rating, research by Shawbrook found that 16% of landlords would struggle to afford the improvement costs, while 29% believe these targets will only be achievable with government support.

However, some had already started to make investments in their properties before the new regulations were introduced. More than a fifth (21%) made some changes to their properties ahead of the previous government scrapping the targets last year, while 22% had undertaken upgrades and their properties are now rated C or above.

Professional portfolio landlords were more likely to have already forked out for upgrades; a quarter of landlords with four or more properties in their portfolio had made changes prior to the targets being scrapped compared with 17% of landlords with up to three properties.

Widespread fear

As the UK faces another winter of rising energy costs, tenant demand for energy efficient properties is likely to rise again. However, making improvements will come at a higher cost to landlords without any additional help, reports Shawbrook, which found that EPC regulations have sparked widespread fear among landlords, with 78% saying they are a concern and a quarter of those feeling very concerned.

Emma Cox, MD of real estate, says it’s clear that landlords will need support, both from the government and the industry. She adds: “It’s also worth acknowledging that the cost of improvements is consistent nationwide, but the impact is disproportionately higher for landlords with lower-value properties, making a £10k investment far more burdensome in the North than in London, for example.”

The Government has recently revealed that it plans to help landlords with properties in Britain's less wealthy areas with grants of up to £30,000 for their first property, and up to £15,000 for subsequent homes, although tenants must have a fairly low household income or be on benefits for their home to qualify. Landlords can also qualify for financial via other schemes covering the installation of air source heat pumps.