Landlords have largely complied with energy performance certificate (EPC) regulations, but many have only undertaken energy-efficiency improvements to meet minimum standards, according to new research from global credit rating agency Morningstar DBRS.
Data reveals that while 13.8% of rental properties were initially rated F or G, only 1.9% received these ratings at their most recent inspection. This follows the introduction of minimum energy efficiency standards (MEES) in 2014, which prohibited the private letting of properties with EPC ratings of F or G unless an exemption was granted.
More than half of rental properties initially rated F or G were upgraded only to band E, compared with 28.2% of owner-occupied homes. Morningstar DBRS stated that landlords in the private rented sector have largely focused on meeting minimum requirements rather than making greater improvements.
The National Residential Landlords Association (NRLA) has previously indicated that many landlords may choose to sell properties rather than retrofit them to meet proposed EPC C standards by 2030. Chris Norris, chief policy officer for the NRLA, said it is not feasible for every property to be retrofitted within the proposed timeframe, citing varying housing stock, work complexity, and a lack of skilled tradespeople.