Landlords may need to evict tenants to do EPC improvements

A survey suggests that as many as one in six landlords with properties currently below EPC ‘C’ may have to evict tenants to achieve the necessary energy efficiency improvements within the government timeframe.

The UK government is proposing to raise the minimum Energy Performance Certificate rating for privately rented properties in England and Wales to C by 2030. This means that landlords will need to ensure their properties meet this standard, with some exemptions, to continue renting them out. The current minimum standard is EPC E. 

But the new study of some 1,000 landlords by lender The Mortgage Works shows that while 39% of landlords are mindful of disruption to tenants – possibly triggering a temporary rent reduction – some 17% say they will need to evict tenants to complete the works, presumably where they are so intrusive it would be unsafe to remain. 

TMW says there has been significant conversation on the limited rights a landlord has to evict tenants once Section 21 is abolished later this year by the imminent Renters Rights Bill. However, refurbishment will remain as grounds to evict tenants.  

Dan Clinton, head of buy to let at The Mortgage Works, comments: “Changes to Minimum Energy Efficiency Standards have been under discussion for some time but our research shows limited landlord awareness with some looking to exit the market. 

“Policymakers should recognise the vital role landlords play in supporting economic growth through labour mobility and for providing homes to low-income households. Improving the energy efficiency of private rented homes is important but the significant logistical and financial challenges of upgrading 2.5 million properties must be acknowledged.  Striking the right balance between environmental progress and housing stability is crucial. 

“To safeguard continued investment and protect tenants from higher rents or reduced supply, landlords need clear guidance, adequate support, and sufficient time to make their properties greener.” 

The Mortgage Works wants three areas to be addressed by the government:

• More time factored in between completion of EPC reform and new Minimum Energy Efficiency Standards regulations coming into force;

• A phased implementation which tackles the least energy efficient properties first and allows capacity in the retrofit sector to build over time. The initial requirement should be for EPC E properties to be upgraded to EPC D by 2030. Requirements could then shift to EPC D properties with the aim of all rental homes meeting the EPC C target by 2033 or beyond;

• Opposition to a single national cost cap setting the maximum amount landlords are required to spend on improvements. £15,000 is too high and the cap should be reconsidered and replaced with an approach which recognises the complexity of the diverse nature of the UK housing stock and owners’ circumstances.  

Read The Mortgage Works’ full report here. 

This article is taken from Landlord Today