Energy efficiency certificates (EPC) reform retains popping again up in conversations with landlords, and for good cause.
The unique 2025/2028 plan could have paused however the February session got here again with a new set of dates. Landlords should obtain an EPC score of C or above for new personal tenancies from 1 April 2028 and for all tenancies from 1 April 2030.
There is a proposed spending cap of £15,000 per property, with the chance of a decrease quantity for much less reasonably priced properties, however the EPC regulation is now firmly again on landlords’ agenda.
There continues to be a continued lack of certainty. Landlords might select to not half with money till the EPC and MEES (Minimum Energy Efficiency Standards) consultations are ultimate, however that leaves a slender window between affirmation in 2026 and the 2028 cut-off.
Demand for warmth pumps and scaffold boards might spike
The precise prices are additionally a problem. A £15,000 cap appears beneficiant till you multiply it by 10 or 25 properties. Many portfolio shoppers will want further borrowing somewhat than financial savings to cowl the works.
They do have choices. Buy-to-let lenders equivalent to The Mortgage Works are already rewarding A-to-C inventory with greater LTVs and decrease charges. Green additional advances, cashback for renovation and product switch incentives are being launched, and we count on that to extend as soon as the rules are confirmed.
Grants can stretch the finances additional, so advisers can remind shoppers to have a look at these choices whereas out there. For instance, ECO4 runs to March 2026 and might cowl a big share of material insulation or heating improve for low-income tenants.
Advisers ought to refresh their data of out there inexperienced merchandise
On prime of that, and dealing with the Green Finance Institute, the federal government is inspecting property-linked finance that might connect mortgage compensation to the dwelling somewhat than the borrower, doubtlessly decreasing danger premiums for lenders and curiosity prices for landlords. Keep an eye fixed on that session!
Quick win
A fast win is to make sure that landlords perceive their properties. Too many landlords have outdated EPCs that won’t replicate latest modifications.
Advisers ought to encourage a contemporary evaluation as a result of the shopper could also be nearer to a C than they thought. The EPC will give steerage on the kind of work that may be thought-about, and free portals equivalent to Propflo can help additional.
Help landlords to think about grants and extra funding wants
Some landlords could resolve that enchancment isn’t definitely worth the problem and can exit as a substitute. However, some property house owners are placing drained inventory available on the market and re-investing in more energizing properties with rankings of C or above.
Other skilled landlords are shopping for and planning long-term funding, completely happy to spend £15,000 right now for the longer-term advantages of improved rental revenue and capital appreciation. Advisers who can clarify each the retrofit path and the acquisition alternative will add worth for his or her shoppers.
Penalties
The English Housing Survey means that simply over 2.5 million privately rented properties nonetheless fall into EPC bands D to G, with proposed penalties of as much as £30,000 per breach, per property as soon as the upper customary comes into power.
Too many landlords have outdated EPCs that won’t replicate latest modifications
It’s proposed that solely the prices of work carried out after the rules come into power will rely in the direction of the spending cap, so ready for full certainty on the regulation sounds wise. However, demand for installers, warmth pumps and even scaffold boards might spike as soon as the rules are locked in. Starting to plan preparatory works now and locking in costs might be prudent, and should scale back the chance of a landlord turning into a mortgage prisoner when 2028 rolls round.
At the following portfolio overview, advisers ought to guarantee they’re gathering the present EPC score and pencilling in maybe a notional quantity of £10,000 per sub-C property. Help landlords to think about grants and extra funding wants. Link them to instruments equivalent to Propflo to map out the works.
Many portfolio shoppers will want further borrowing somewhat than financial savings to cowl the works
Advisers must also refresh their data of out there inexperienced merchandise that give rewards of cashback and charge reductions for finishing the work. At the time of writing there have been practically 350 merchandise from round 17 buy-to-let lenders, throughout each specialist and mainstream, providing some type of inexperienced incentive. Tools equivalent to Twenty7tec can assist establish these lenders.
Advisers can add worth by serving to shoppers to deal with power enchancment as half of their customary property administration, not a last-minute compliance value, to draw higher tenants, improve property values and revel in keener mortgage pricing.
Liz Syms is chief government of Connect for Intermediaries
This article featured within the June 2025 version of Mortgage Strategy.
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