Extending the EPC conversation

This is especially evident in the wake of impending government legislation around minimum EPC levels for rental properties, although it’s also prudent to point out that it’s yet to be set in stone when these potential changes will come into effect.

However, what we do know is that this engagement process appears to be working. The Q1 2023 BVA BDRC Landlord Panel report – brought to you in conjunction with Foundation Home Loans – outlined that landlords are now much more engaged with minimum EPC levels and have gained a much stronger understanding of what they may need to do in the future if a property within their portfolio sits at an EPC rating of D or below.

The research revealed that 85% were aware and fully understand EPC requirements (up from 65% at the end of 2022), 12% said they were aware but didn’t understand (down from 25%) and only 3% stated that they were not aware of these requirements (down from 9%).

It’s also positive to see that action is being taken with 80% of landlords saying they had already carried out some remedial work in response to these requirements. This is largely split between 52% who said they had done the work at the minimum cost in order to comply and 38% who stated that they were carrying out the works in order to maximise the long-term value of their property.

Clearly, many advisers are already having conversations with landlords about their EPC levels – hence the increase in awareness – and it’s important that these conversations do not stop. As important is for advisers to understand how lenders such as Foundation Home Loans can provide Green product options with incentives to those landlords who get their properties above an EPC level of C right now.

As a lender, we’re here to support and help advisers who are walking their landlord clients through all their options and are looking to set themselves up for the long-term, so please make the very best use of us.

Contact your BDM

FOR INTERMEDIARIES ONLY