Aldermore, the specialist finance lender, has published its research ahead of the EPC changes. In 2025, all newly rented properties are required to have an EPC rating of C or above. From 2028, this will apply to all existing tenancies as well.
The research shows that landlords estimate they will face an average of £10,400 per property with a rating of C or below, to ensure they are up to standard. 71% of landlords will pay for upgrades from existing savings, 25% will use Government funding, 23% will raise monthly rents and 11% will seek advice from their mortgage lender.
Just 18% of landlords claimed they were unaware of the upcoming EPC changes. The majority, 62%, are aware and understand the changes fully. Understandably, this will deter landlords from buying properties with an EPC rating of D or below, with 65% saying they would be less likely to purchase such a property now.
Jon Cooper, director of mortgage distribution at Aldermore, said: “With people’s lives revolving more around their homes than ever before, a robust private rented sector has never been more vital. The data suggests the looming EPC change will cause challenges, but the more support landlords receive from brokers and lenders now, the easier it will be to navigate.
“Encouragingly, awareness appears high among landlords so many will be thinking about what changes may need to be done already. As we move towards a post-pandemic environment, many landlords will be looking to the future, so it is the perfect opportunity for brokers to have conversations with their clients about the EPC ratings. This will ensure, where needed, a plan for financing can be mapped out to assist landlords in getting non-compliant properties up to standard.”
Original article featured here…
Earlier this month, Aldermore launched a new residential range and cut rates across its existing products.