Figures vary but recent studies suggests accidental landlords account for 35 – 60% of all landlords in the UK and includes people who have inherited a family home and people who bought a property to live in themselves, but ended up renting it out rather than selling it when relationships, work or affordability meant it was no longer required or suitable for their needs.
Historically, motivation to keep hold of properties has included the potential to ‘sit on’ property while its value grew at unprecedented rates. Renting was seen as a way to provide good quality accommodation to those in need while the property effectively paid for its self.
However, with the Renters’ Rights Bill now law and plans to extend the Decent Homes Standard raising the minimum EPC standard for rental properties to Grade C, even for properties the landlords have happily lived in themselves could require significant work to be compliant with the new standards.
The minimum EPC standard for landlords will be the same regardless of the value of the property or the amount of rent charged so landlords of smaller or older properties face a disproportionate challenge when it comes to meeting compliance costs.
A new boiler or full heating system, for example, costs almost the same whether it’s for a one bedroom flat or a three bedroom house, and labour charges remain broadly similar whether the rental income is £600 a month or £6000 a month creating a situation where owners of smaller or older properties face the same costs for much smaller returns.
In addition to the problems this will create for landlords of smaller and older properties, the Renters Rights Bill will make it more difficult for landlords to increase rents to reflect the improvements for various reasons including rent caps and the ‘suggestion’ that landlords can reclaim the costs through increased value of the property when it is sold, despite evidence pointing to the contrary showing the monetary resale value of home improvements decline with age.
Same Standards, Different Measures
Despite what the headlines suggest, most privately rented homes are not substandard. According to the English Housing Survey, around half already meet EPC C or above, roughly in line with owner-occupied homes.
It is also incorrect to assume that all properties marked with an Energy Performance Certificate (EPC) grade D are neglected. An EPC rating of D signifies a moderate or average level of energy efficiency, which is a common rating, especially for older, but often well-maintained, properties in the UK.
This is because the EPC system doesn’t just measure what needs doing or differentiate between different property types, it measures what could be done without due consideration of implications or practicality. That means even safe, well-maintained properties can appear to “fail” compliance tests, regardless of how they compare to similar owner occupied properties, if they don’t have every possible energy-saving feature.
In many cases, landlords aren’t being penalised for neglect — they’re being penalised for age and practicality.
Even the government admits that many older properties will never realistically reach EPC C without major structural changes.
While owner-occupiers are encouraged to improve energy efficiency, landlords are legally required to do so. In effect, the law expects landlords to exceed the standards that apply to owner-occupied homes — often without financial support or grants.
How Much Will It Cost to Meet EPC Grade C Standards?
Government estimates suggest bringing a property up to EPC C costs between £5,000 and £10,000. That’s an average according to what needs doing, and not according to the size of the property – largely costs will be the same regardless of the size or value of the property.
For homes built before 1970, especially solid-wall or stone properties, the cost can easily exceed £15,000–£20,000 — and that’s before considering:
- Re-decoration and certification costs
- The risk of RRO claims if work takes longer than expected
How the Renters’ Rights Bill Impacts on Compliance and Costs
In addition to the costs of materials and labour, under the new laws landlords could also be expected to find tenants alternative accommodation while the works are being carried out AND prevented from reclaiming the costs through reasonable rent rises if the proposed raise is above the average rent for the size and value of the property.
In addition to material and labour costs, landlords could be expected to bear the costs of:
- Lost rent during works
- Temporary tenant relocation
Failing to meet the new targets risks fines, rent repayment orders, and/or restrictions on letting other properties.
- Rent Repayment Orders (RROs) — giving tenants the power to reclaim up to 12 months’ rent for non-compliance.
- Increased enforcement powers for councils, making accidental non-compliance costly.
- Greater tenant awareness, with advocacy groups and online tools helping tenants report or claim compensation faster than ever.
While landlords will retain the right to sell up if it they are unable to or unwilling to meet the standards as long as they intend to sell the property or live in the property, the process to gain possession through Section 21 will no longer be available and expected court delays, as well as tenant objections are very likely to make it a far more difficult process using Section 8.
The Best Time to Exit Is Before the Rules Change
In summary, even landlords with good intentions and well-kept homes could soon find themselves facing financial and legal headaches.
If your property is more than 50 years old — particularly if it’s solid-wall, single-glazed, or lacks central heating upgrades — now may be the best time to sell.
At Landlord Sales Agency, we help landlords:
Sell tenanted or vacant homes quickly and discreetly Avoid costly refurbishments or tenant disputes Get a fair, fast sale at market value Walk away before upcoming regulations make compliance unaffordable
Selling before the Renters’ Rights Bill and EPC rules tighten could be the most cost-effective decision you make.
Find out how we can help today – use the link below to tell us more about your property and we’ll tell you more about how we can help you sell your smaller or older freehold houses before The Renters Rights bill make it more difficult to sell your properties.
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