CHANGES to Energy Performance Certificate rules is leading to landlords “fleeing” the sector, a leading property association warns today.

Under new Government proposals all rental properties will need an EPC rating of C or above from 2025.

The National Association of Property Buyers said despite there being two years until the rule-change, it was already having an impact on the sector.

And they warned, ultimately, rent prices already soaring in many parts will rise even higher.

Spokesman Jonathan Rolande said: “The proposed upgrade to EPC legislation is the latest in a long line of disadvantages of owning a Buy To Let . To make properties cheaper to keep warm, and to help the country meet its green targets, landlords will soon have to spend up to £10,000.
“Whilst landlords of expensive properties in places like London or Manchester can take this in their stride, the thought of spending £10,000 on a home worth £80,000 will be a catalyst to see yet more landlords flee the sector.
“If these homes sell to owner occupiers, there will be increased scarcity of homes to rent, potentially forcing up prices yet again. Many landlords are already getting out and I suspect more will follow.
“At the moment if a landlord has a sizable mortgage, owning BTL for the rental income is virtually pointless. Months or even years of profit can disappear in one go if there’s a costly boiler issue or the managing agent of the block decides a new lift is required.”
Mr Rolande’s comments come just days after the Bank of England sounded the alarm over a worsening rental market crisis which many experts say could be deepened by the EPC changes.

From 2025, under the current proposals all newly rented properties will be required to have an EPC rating of C or above. Currently, properties only require an EPC rating of ‘E’ or above. Existing tenancies will have until 2028 to comply with the new rule changes. While awareness is beginning to grow around these proposals, there is still much consideration that needs to be given to the actual impact that these changes will have on landlords and property owners. There is a real concern that a substantial amount of properties risk potentially being declared ‘unrentable’ and subsequently ‘unsellable’ or ‘unmortgageable’ due to landlords being uninformed about what the changes will mean for current and prospective tenancies.