A mortgage lender is calling on Chancellor Rachel Reeves to include measures in her October Budget that would support struggling landlords, particularly with energy efficiency upgrades. Skipton Group, which comprises Skipton Building Society and Connells lettings and estate agency brands, emphasises the challenges landlords face in meeting the government’s energy efficiency targets.
Landlords are required to ensure their properties achieve an Energy Performance Certificate (EPC) rating of C by 2030, a significant undertaking that many will find difficult without financial assistance or incentives. Skipton Group is pushing for action, noting that many landlords are under pressure to make costly improvements to their properties in order to comply with the regulations. Without support, they argue, the rental sector could be further strained as landlords struggle to meet these requirements.
Research from Skipton shows that a significant portion of landlords, around one-third, are not fully aware of the Energy Performance Certificate (EPC) ratings of their properties. This lack of awareness poses challenges as 39% of landlords have indicated they might be forced to sell their properties if they are unable to afford the necessary improvements to meet future EPC standards. Additionally, 46% of landlords are considering using their savings to fund these upgrades, highlighting the financial strain these requirements could place on property owners.
Hamptons, a well-known lettings agency within the Skipton Group, has also raised concerns, warning that it could take landlords as long as 18 years to meet the required EPC targets. The combination of lengthy timelines and financial pressures has led Skipton to call for government intervention to provide more robust support to landlords. Suggestions include making energy efficiency improvement costs tax-deductible, offering grants, or even providing match-funding to help ease the financial burden on landlords trying to upgrade their properties.
With stricter EPC regulations looming, Skipton is emphasising the need for urgent government action to prevent landlords from being priced out of the market or forced to sell their properties. The group believes that offering targeted financial support will not only help landlords meet the necessary energy efficiency targets but will also contribute to a more sustainable and energy-efficient housing market overall.
Charlotte Harrison, who leads home financing at Skipton Group, highlights the essential role landlords play in the UK’s housing market. She acknowledges the challenges landlords face in making their properties more energy-efficient, from understanding the requirements to managing the costs and accessing proper resources. Harrison stresses that government support is crucial in helping landlords navigate these obstacles and meet the upcoming energy efficiency targets.
Harrison argues that the government must take action in upcoming budgets to encourage landlords to invest in decarbonising their properties. This effort is vital for helping the UK achieve its net-zero emissions goals. Moreover, she believes that improving the energy efficiency of rental properties will also address some of the pressures created by the cost-of-living, energy, and climate crises affecting households across the country.
She also points out that, so far, more incentives have been directed towards homeowners and social tenants to upgrade their properties, leaving private landlords with fewer options. Harrison sees this as an opportunity for the government to balance the scales and offer landlords the same level of support to ensure they can contribute to the country’s environmental and economic goals.
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