New EPC Rules Could Wipe Out Thousands of Rental Properties – Are Landlords Being Set Up to Fail?
New EPC Rules: Could Landlords Be Forced to Sell Up?
The government has confirmed that all private rental properties must have an EPC rating of C or higher by 2030, with landlords limited to £15,000 per property for upgrades. While this aims to improve energy efficiency, experts warn it could push landlords out of the market—especially those with flats in tall buildings.
The Big Problem: Leasehold Flats
One of the biggest concerns comes from The Property Institute (TPI), which says the new rules don’t work for leasehold flats—many of which are in older, energy-inefficient high-rise buildings.
Jaclyn Mangaroo of TPI:
“The proposals do not directly address the unique challenges of tall buildings, particularly in leasehold blocks, where improvements are typically prohibited.”
Key Facts:
✅ 20% of homes in England and Wales are flats, maisonettes, or apartments.
✅ Nearly 5 million homes in England are leasehold.
✅ 40% of leasehold homes are private rentals.
Because leaseholders don’t own the whole building, they can’t always make energy upgrades, meaning many properties might not meet the new rules. If landlords can’t upgrade, they may sell up, causing a rental shortage.
Build-to-Rent Investors: “The Deadline is Unrealistic”
The British Property Federation (BPF) supports improving energy efficiency but says the 2030 deadline is too tight.
“We’ve lost four years since this was first suggested in 2020. Achieving EPC C by 2030 will be challenging.”
Why This Matters:
Landlords need certainty about future targets—otherwise, they may hold off on investing.
Rushing retrofitting could lead to poor-quality work or higher costs.
Some properties may not be able to meet EPC C without huge renovations.
What’s Next for Landlords?
For now, the £15,000 cap on costs is a relief, but many leasehold properties still face uncertainty. Without custom solutions for high-rise flats, landlords may find themselves stuck between costly upgrades and selling up.
To keep rental homes available, the government may need to rethink the strategy—offering better funding options or extending the deadline.
Source: https://www.lettingagenttoday.co.uk/breaking-news/2025/02/concerns-grow-about-labours-epc-private-rental-clampdown/
