Nearly a quarter of tenants face being moved out of their homes when landlords start work to improve energy efficiency.
The Mortgage Works’ survey of 1,000 landlords reveals that 23% will have to temporarily move tenants to another property or hotel while work is underway, and 17% plan to evict tenants and complete the work between tenancies - presumably where the works will be so intrusive it would be unsafe for tenants to stay put.
Using money they already have is the most likely means to fund required works, but 37% say they will need to raise rent before or after improvements to cover the cost and 39% will offer a temporary rent reduction to compensate tenants for the disruption and inconvenience.
The specialist lender of Nationwide found 28% of those with EPC D rated properties plan to sell if the government's proposal for a minimum rating is implemented, along with widespread confusion among landlords in its latest report about attitudes to Minimum Energy Efficiency Standards (MEES); 62% don’t know that having an EPC for their property is a legal requirement, while 67% are unaware that the proposed MEES will require at least an EPC C.
It is calling for landlords to get tax breaks to help them offset the cost of energy efficiency improvements against rents when they are delivered.
The Mortgage Works also believes more time should be factored in between completion of EPC reform and new Minimum Energy Efficiency Standards regulations coming into force. Rather than the requirement to meet EPC C standard by 2028 for new tenancies and 2030 for all tenancies, it suggests the initial requirement should be for EPC E properties to be upgraded to EPC D by 2030. This could then shift to EPC D properties with the aim of all rental homes meeting the EPC C target by 2033 or beyond.
It adds that the cost cap of £15,000 should be reconsidered to recognise owners’ circumstances.
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