Over a quarter (27%) of landlords admit they don’t know the EPC rating of their properties, according to Shawbrook Bank.

And a further 23% said that their properties were rated D or below.

This will be a major problem if proposed changes to Minimum Energy Efficiency Standards for landlords are brought into law from 2025 for new tenancies, and for all tenancies from 2028.

If so, landlords will need to upgrade their properties to a minimum Energy Performance Certificate C rating in order to keep letting them out to tenants.

The lender said that its survey findings highlight that many landlords could be unprepared for the proposed 2025 deadline, risking properties being left unrentable and unsellable.

Older homes are more likely to have a lower EPC rating and require improvement – 30% of landlords with Victorian era properties in their portfolio said they were rated D or below.

Costly improvements

Two in 10 landlords don’t have the necessary funds required to begin refurbishments of their properties, said Shawbrook.

This is particularly the case with older landlords aged over 55. A quarter of this group said they don’t have the funds available to make changes to their properties to bring them in line with the proposed requirements.

However, many landlords are set to make changes to their properties, and 37% said they want to see incentives to make changes, such as favourable borrowing rates.

A third of landlords called for guidance on timings on how to phase the implementation of changes, and 29% wanted to see signposting to suppliers who could help them make improvements to their properties.

Emma Cox, sales director at Shawbrook Bank, said: “Improving the energy efficiency of properties is a vital step in reducing our impact on the environment, however, this will not necessarily be a straightforward process for landlords. The UK has a significant proportion of older properties that are particularly challenging to improve, and many landlords remain in the dark as to their properties’ current ratings.

“Landlords will require further support from both the industry and the government in order to make the changes in good time. Indeed, with the cost of labour and supplies rising, it could be a costly exercise for all landlords, but there are solutions available.

“It is in everyone’s interest that properties are made more energy efficient, however this cannot be done half-heartedly, and we must ensure sufficient resources are provided so that landlords can make the appropriate changes to benefit their properties and their tenants.”