Seven in 10 (71%) landlords own rental properties with an energy performance certificate (EPC) rating of D or below, according to Shawbrook.

The buy-to-let lender said that only a quarter of landlords’ portfolios contain properties that all meet the government’s proposed C target for energy efficiency.

Worryingly, nearly four in 10 landlords (38%) only have properties that are rated D or below.

What are the rules?

Landlords are currently able to let homes which have an EPC rating of E and above, but the government wants to tighten the standards.

It is consulting to impose a minimum C rating in England and Wales by April 2025 on new tenancies.

Shawbrook found that landlords estimate that bringing the average property up to a C standard would cost them almost £2,000. However, it said that ‘with the cost of labour and materials going up, landlords could be underestimating the cost of the work’.

Emma Cox, managing director of real estate at Shawbrook, said, “It’s likely that efficiency standards will become tougher in the future, which is just one of the reasons that landlords should take note of these proposals and start making a plan.

“Landlords should know that they are not alone in this. Lenders, including Shawbrook, are working hard to help drive awareness of regulatory change, support with creative product options, and offer practical support to customers and partners. Standard products like bridging finance can also play a role in securing the future of the sector.”