The Intermediary – September 2025 - Flipbook - Page 12
BUY-TO-LET
In focus
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Given the financial pressures landlords already
“There remains a lack of certainty over what
“Landlords have been squeezed over the past
these standards will be, meaning that landlords
few years with taxation, legislation, licensing and
would be ill-advised to take on significant
higher interest rates – adding the requirement
additional debt until they know how to ensure
to improve their properties as well might be the
compliance.”
breaking point for some,” he warns.
Whatever the outcome for EPCs, Norris would
like to see broader financial support from the
The waiting game
Government to help drive uptake of retrofitting,
Even among those landlords that have the money
rather than leaving this at the feet of the property
to carry out upgrades, it is perhaps unsurprising
finance market.
that many are waiting until the proposed
regulations are confirmed. The consultation
“Green mortgages are potentially a good way
of encouraging the implementation of energy
closed in May, and while details are expected
efficiency measures, but they need to be designed
soon, many are in limbo in the meantime.
and positioned in such a way as to be competitive
Adding to the uncertainty are planned changes
to the EPC system next year, which could further
move the goalposts for current and future
property ratings.
Chris Norris, chief policy officer at the
National Residential Landlords Association
10
do, by when, and the best way to secure funding.
face, he believes further innovation is needed.
and offer recognisable savings,” he says.
“Unfortunately, the limits imposed on
landlords’ ability to deduct finance costs for
tax purposes makes it more difficult to justify
extensive borrowing to fund retrofits.”
Added to this are the complexities of the
(NRLA), says: “It is very difficult for any
market, says Cox: “A core challenge is the
business in the private rental sector to
diversity of the landlord market itself.
know how to go about improving their stock
“Some operate large portfolios and can see
as the Government is yet to confirm exactly
the economies of scale in upgrading multiple
what its ambitions are. Landlords are
properties. Others are smaller landlords who
struggling to understand what they need to
have to really consider the cost of funding EPC
The Intermediary | September 2025
