Buy-to-let landlords may have to slash their portfolios as a minimum standard for energy efficiency looms.
A dive into the topic by the FT finds many landlords arguing that green requirements are “inconsistent and unclear”, and that the cost of improving standards would make their business unviable.
Lenders too are shifting strategy, with only the most energy efficient properties warranting a discounted deal on buy-to-let mortgages.
Some landlords expect to push the pain onto tenants.
“Normally I tend to [raise rents] by around the rate of inflation, which until a few months ago was 3 or 4%,” said one. “But I know I’ve got this big expense coming pretty soon from these properties. So I did put rents up on some of my properties by more than the rate of inflation in anticipation of the rise in EPC costs.”
