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How satisfied are landlords with the new EPC announcement?
With the goal posts changing towards the back end of 2023, this leads to the question - how have landlords responded to this EPC U-turn?
The impact of regulation throughout the BTL sector has been well-documented on many levels. This is also the case when it comes to the proposed increase in Minimum Energy Efficiency Standards for rental properties. However, with the goal posts changing towards the back end of 2023, this leads to the question - how have landlords responded to this EPC U-turn?
According to the latest BVA BDRC Landlord Panel research for Q4 2023, the majority of landlords (64%) are satisfied with the new EPC announcement. Breaking this down, single property landlords were significantly less satisfied with the new EPC ‘C’ announcement compared to larger landlords, although this was prominently driven by a higher proportion reporting indifference (at 36%).
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Landlords with 11+ properties were most likely to be satisfied at 80%, with 50% reporting they are very satisfied. Only a minority were reported to be dissatisfied. Interestingly, 3 in 4 landlords still expect the legislation to be brought in sometime in the future with, on average, this expected to be enacted in 3.4 years.
In further regulatory news, the data highlighted that 66% of landlords are familiar with the Rental Reform Bill (RRB), with 44% of landlords expecting this to come into force in 2024 with the same proportion citing 2025 as the time when it will become law. 8% expect the RRB to be enacted after 2026 and 4% in 2026.
The research also suggested that half of landlords expect the abolition of Section 21 to be included in the RRB. Single property landlords were the most likely to expect this at 69%, whilst larger portfolios (11+ properties) were the least likely to expect this at 27%. The majority of those that don’t think it will be included in the bill (70%) expect Section 21 to be abolished in the next 10 years.
With 3 in 4 landlords still expecting EPC legislation to be implemented and a third not familiar with the RRB, this paves the way for advisers to engage with all landlord clients to ensure they are on the right energy efficiency path for their portfolio and future needs. As well as being fully equipped to deal with the potential RRB implications when this comes into effect.
As a lender, we’re here to support you and your clients with a range of BTL-related queries, whether this is about products, criteria or regulatory concerns. So please make the very best use of our expert IBDM team at any given time. You can contact our IBDM team
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