Angus Stewart, the chief executive of online buy-to-let mortgage broker Property Master, has called on the Chancellor to offer more support to landlords struggling to meet the cost of the government’s “stretching” new energy efficiency rules in his Budget.
As part of its Net Zero greenhouse gas target for 2050, the government is proposing to increase the mandated Energy Performance Certificate for private rented homes from the current E to a C for all new tenancies by April 2025 and for all existing tenancies by 2028.
Stewart said: “We are very concerned about the noises we are hearing from landlords in respect of the forthcoming changes to the energy efficiency rules and the lack of finance to fund the improvements they will need to make.
“Given that 67% of private rented homes currently fall short of what the government is proposing the race is on for landlords to find the money and tradespeople to do the necessary work.
“In a recent survey of a sample of our customers only 13% thought the government’s new targets for private rented homes were achievable.
“Around a third thought the cost to them of meeting the new targets would be between £5,000 and £10,000 per property.
“We welcomed the setting up by the government of the Green Homes Grant scheme, but funding is capped at £5,000 per property and applying for a grant is difficult and locating an approved tradesperson to do the work is not easy.
“We are asking that in his Budget the Chancellor looks at what more financial help can be made available to help landlords who want to meet the climate change challenge.
“Otherwise, our fear is that the number of homes for rent could fall as landlords throw in the towel.”