Buy to let mortgage provider Paragon Bank reports that 42% (figure provided by BVA-BDRC insights consultancy) of private rented sector landlords in a survey had no awareness of upcoming residential minimum energy efficiency standard requirements and a further 28% had some awareness but "don't understand the details". Thus - currently only 30% are aware of and understand the details of the new requirements.

If this statistic is extrapolated across the whole private rented sector landlord community then, whoever is in Government when the new requirements come in to effect will have a mighty task in hand as far as landlord compliance (or ability to comply) is concerned (not to mention enforcement).

Paragon believe that BTL lenders also have a role to play in providing new products (e.g. green mortgages) to landlord clients in order to get a greater number of them across the line in time for these changes.

Recognising that part of the problem is the profile of private rented property stock in the UK - older than in other European countries and with a large percentage comprising terraced properties the bank's report points out that their is a large overhang of mortgages written on UK stock (by various providers) that currently does not meet an EPC rating of C.

Paragon's report, The Rental Sector Energy Challenge, makes sobering reading given that we are already half way through 2022 and the new regulations will start to come in to effect in 2025. Already there are reports that there is movement, amongst those in the market to invest in adding to their property portfolios, away from properties rated below C. And if the market has started to show this movement and banks are looking at new products then Government itself will also need to get its skates on in prepping the ground to allow for a smooth(er) transition to increased energy efficiency in older rented properties. Paragon's report suggests a strong awareness campaign directed at the landlord community is in order - the earlier the better.