The government’s aim of achieving an Energy Performance Certificate (EPC) rating of C across all rental stock is unattainable, 95% of professionals say.
That’s according to a poll of building surveyors, recovery experts, private landlords, investors and developers from surveyor and auctioneer firm Landwood Group.
There’s a worry that this ambitious target could push more landlords out of the market, at a time when there’s a need for more rental properties.
Upgrading all EPCs in the UK is especially challenging, given that the country has some of the oldest housing stock in Europe.
Mark Bailey, partner at Landwood Group, said: “This so-called ‘green’ initiative might look good on paper, but it’s built on shaky foundations.
“The focus on improving modern social housing, overlooks the vast majority of Britain’s private rental properties which are ageing and would require significant, costly upgrades to meet the EPC C standard.
“For many, achieving this rating is not just challenging; it’s nearly impossible without substantial financial investment.
“Previously, government subsidies helped with upgrades like heat pumps and insulation. Now, landlords have little choice but to sell or raise rents to cover these high costs.”
Landwood Group has witnessed a surge in landlords auctioning their properties, from single homes to large portfolios.
Bailey added: “The consequences for renters are clear. As landlords are forced out of the market, tenants will face fewer housing options and higher rental prices.
“Energy efficiency is certainly important, especially in light of rising energy costs. But what use is energy efficiency if people can’t afford a place to live?
“The government needs to address the housing crisis before imposing such stringent requirements. As it stands, this policy risks doing more harm than good.”
It would cost £24m to retrofit all properties in England, Wales and Scotland to an EPC C level, according to separate research from Reapit.
There was previously a target of achieving an EPC rating of C by 2028, before former Prime Minister Rishi Sunak axed the policy.