UK Landlords Were Primed for the 2025 EPC Rule

Shawbrook’s recent research has thrown light on how UK landlords were gearing up for the proposed EPC legislation by the Government. Although this regulation has since been abandoned, it initially mandated landlords to ensure their rental assets met a minimum EPC rating of C by 2025 for new leases and for all rented properties by 2028.

Shawbrook’s report unearthed the following key insights:

  • A significant 80% of landlords across the UK claimed to be ready for the EPC rule set for 2025.

  • Digging deeper, 30% of these respondents confirmed their properties already met the A-C EPC rating criteria.
    50% had strategised to enhance their EPC ratings before the approaching 2025 deadline.

  • A smaller faction, 17%, admitted unpreparedness and lacked plans to upgrade their properties’ EPC standings.
    A mere 3% professed unawareness of this regulation.

  • Roughly 46% of landlords had invested anywhere from £500 to £20,000 in the past year for property enhancements. On average, this expenditure was £25,148.

  • London’s landlords exhibited a higher spending pattern, with an average investment of £37,164.

  • Upcoming months spell concerns for landlords: 20% dread escalating labour costs linked to property refurbishments, and 16% are apprehensive about EPC norms.

  • The impending rules spurred a majority of landlords to adopt a greener approach for future investments. Over a quarter, 28%, are steering towards acquiring contemporary, energy-efficient properties in the ensuing half-year.

  • Addressing the buzz about potentially pushing the initial EPC rule deadline to 2028, a significant 31% of landlords believed it would provide them with more wiggle room to execute enhancements. Meanwhile, 29% affirmed they’d march ahead with their planned enhancements, irrespective of the deadline.

Emma Cox, who heads Real Estate at Shawbrook Bank, commented, “Scrapping the impending EPC regulations might free up capital in the short term for landlords who haven’t yet invested in improving the energy rating of their properties. But while policies shift, climate change is going nowhere, and energy efficient buildings will remain central to net zero plans. Rules might not be changing as soon as 2025, but professional landlords with modern, energy efficient stock will be in the best position to attract tenants, as well as reduce potential voids, and importantly, be prepared for future legislative change.”