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According to Market Financial Solutions, one in five landlords are unaware of the upcoming energy efficiency certification upgrades that the government plans to introduce.
The lending specialist says that 42% of landlords are “not yet aware” of the rule changes regarding the energy efficiency of rented houses, which will come into force in two years.
The government is proposing that by April 2025, all newly let properties have a minimum energy performance certificate C standard in England and Wales. Currently, the minimum standard is E. This measure will apply to existing leases from 2028.
The lender notes that while 58% of landlords are aware of the upcoming changes, that figure rises sharply among more experienced landlords.
It found that 57% of landlords who rent out one home are aware of the new rules, but among owners of four or more BTL properties, this figure rises to 77%.
However, only 38% of landlords “fully understand” what the changes mean, and 64% do not know how to make their property more efficient.
The study shows that 52% are considering a rent increase to pay for any repairs their property may need.
Over the past year, 15% have talked to a broker or lender about getting financing to improve their property’s energy efficiency, while 65% of those owners want more support to help them adapt to the new rules.
A third of landlords are considering selling their properties to BTL before 2025 due to concerns about how they will fund the necessary renovations.
Paresh Raja, CEO of Market Financial Solutions, says: “Despite the support to make the property market greener, landlords are still unaware of upcoming changes to energy efficiency certification regulations, let alone how they can make the necessary repairs. .
“With just over two years left before the deadline for the adoption of the new rules, it is clear that more support is needed. Lenders can help.
“By working with brokers and real estate investors, lenders can ensure that more landlords know what the new rules entail.
“But they can also provide flexible financial products, which are likely to prove important — in the current environment, many landlords won’t have the capital to make the necessary changes to their property, so flexible loans can be critical in allowing landlords to keep up. with a rapidly changing regulatory landscape.
The lender survey was conducted by Opinium, which conducted an online survey of 459 landlords between January 20 and 25.
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