Evolution of energy efficiency
Energy efficiency is an area of increasing focus in the private rented sector and this is reflected in tenant sentiment.
The survey found that 79.9% of tenants think it is important for their rental property to have an Energy Performance Certificate of C or above.
58.3% of landlords have already made eco-friendly upgrades to their properties and 24.9% plan to do so in the next five years, with 28.6% intending to upgrade to meet EPC level C, responding to both regulatory pressures and tenant demand.
Concerningly, over half of all tenant, landlord and agent respondents in the latest 2024 survey (53.7%) feel that the private rented sector is not fit for purpose However, despite continued turbulence in the sector this figure is broadly in line with our 2023 survey, when a landlord commented:
“Increasing regulation, poorer tax breaks and increased mortgage costs are making it less viable for private landlords.” This sentiment was echoed by an agent, who observed that “many landlords are not in a position to pay for upgrades to properties due to the removal of Section 24 and not being able to claim mortgage costs as an expense, plus there have been increased BTL mortgage costs.”
In our 2022 survey, by contrast, a strong majority of agents (76%) and landlords (72%) felt the private rented sector was fit for purpose, citing regular income and protective regulations as key reasons.
