Lettings agents and mortgage brokers are likely to have a central role in supporting landlords ahead of tighter Minimum Energy Efficiency Standards (MEES), according to Dr Neil Cobbold, commercial director of Reapit.
Speaking on Eco Approach’s recent webinar, “Green homes – how can landlords prepare for stricter energy efficiency standards?” Cobbold (pictured) explained that the new EPC requirements create responsibility as well as opportunity for agents and brokers to guide landlords, highlight appropriate finance, coordinate retrofit work, and use portfolio data strategically to assess potential value in future acquisitions and risk within existing stock.
Retrofitting opportunities
After the webinar, Cobbold commented, “Agents have an important role to play. With access to advanced EPC reporting tools, they can easily identify the properties in their portfolio that need retrofitting, and they also have access to trusted contractors who can carry out the work."
“By partnering with specialist brokers, agents can further access advice on a range of financial products that allow landlords to improve the energy efficiency of their properties, giving landlords a professional support network to help them reach the higher EPC C standard."
“Agents who embrace this role could unlock a significant new revenue stream. With the cost of the PRS retrofit programme estimated at £24bn, those who combine technology with industry expertise stand to earn substantial commission while strengthening long-term relationships with landlords.”
Scale of the task
Drawing on Reapit’s analysis of a representative sample of agency-managed PRS homes, Cobbold noted that 51.5% of the properties assessed were below EPC band C, while 17.4% were rated E, F or G. These figures indicate a considerable requirement for investment across the sector.
Reapit’s data suggests that around £24 billion in retrofit spending would be required for privately rented homes in Great Britain to reach the government’s proposed benchmark. In England and Wales, PRS properties need to meet EPC grade C by 2030. Under Scottish draft plans, landlords there have until 2033 to reach a comparable level.
Risk of delay
During the webinar, Cobbold explained that a combination of policy uncertainty, higher costs and limited retrofit capacity is creating ‘inertia’ within the private rented sector.
“There is a nervousness over timeframes, which is creating a supply and demand issue, which in turn causes extra financial pressure for landlords who are looking for a solution. All of this uncertainty makes it more difficult for us to do what needs to be done, make these homes more energy-efficient and help people not only in making their homes better but actually taking them out of fuel poverty.”
He warned that continued uncertainty around government consultations and enforcement is slowing progress. Without clear information on enforcement or exemption rules, many landlords are receiving advice to delay decisions. This approach is narrowing the time available for action, increasing costs as landlords are pushed to compete for limited skilled retrofit trades closer to deadlines, and elevating compliance risk.
