Estate agency trade body Propertymark has called for EPC ratings to be conducted on a ‘property-by-property’ basis.
That means taking varying property types into consideration, and acknowledging that homes in the private rented sector tend to be older and of lower value than the rest of the market.
The government plans to make it so properties in the private rented sector have to reach an EPC of C by 2028 for new tenancies and 2030 for all tenancies.
In response, the trade group called for a relaxed implementation timeframe to help landlords spread the costs of improving their properties, while it recommended for investors to be handed financial incentives to decarbonise their properties.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark wants to see more energy efficient homes, but the targets must be realistic and achievable.
“We have long said that the UK government must do more to understand the finances of landlords and introduce measures that take into account the diverse nature of property types across England and Wales in the private rented sector.
“The timescales for implementing these changes will be key with recent legislative change in Wales and new proposals via the Renters’ Rights Bill in England.
“We look forward to continuing to engage with the UK government on this issue, but it is vital that EPC reforms are clarified first and given time to bed-in, until we have sufficient numbers of skilled tradespeople in the market to carry out upgrades, and so that policymakers recognise the huge costs in doing works particularly the impact on landlords with lower value properties.”
Propertymark noted that minimum EPC targets could significantly disrupt the private rented sector.
The organisation raised concerns that many landlords will struggle to afford the new proposed cost cap, while many will not be able to make changes to their property to meet the new standards.
Some Propertymark members anticipate a substantial number of landlords will leave the market as a result.