New findings have revealed that nearly half of brokers (49%) have experienced little to no interest from property investor clients in the proposed changes surrounding Energy Performance Certificates (EPCs). These findings, unveiled by Maeve Ward, the director of commercial operations at Central Trust and Mercantile Trust, suggest that a significant number of investors are adopting a rather lackadaisical approach.

The revelations stem from a survey conducted by Mercantile Trust, which involved 150 brokers. The results indicated that 61% of brokers exhibited varying levels of confidence in their understanding of the Government's proposed EPC rules. However, a substantial portion of the respondents—12% not very confident, 12% less confident, and 15% neither confident nor unconfident—highlighted their uncertainty regarding the matter.

Maeve Ward, in an interview with The Intermediary, expressed her mixed feelings regarding the survey results: "The thing that both surprised and didn't surprise me, being completely honest, is just the fact that a high percentage either weren't doing anything or didn't feel informed."

One contributing factor to this lack of urgency seems to be the perception that 2025, the designated year for implementation, is still far off, coupled with the uncertainty surrounding the government's final decision on the matter. Many individuals appear to be adopting a "wait and see" stance, assuming that they have ample time to tackle the issue once it takes precedence in their agenda.

Ward further elaborated, pointing out that it's not due to a lack of effort on the part of brokers or lenders but rather a multitude of competing priorities that may be diverting their attention. With growing regulatory pressures and constrained budgets, landlords might also be inclined to adopt a wait-and-consider approach, weighing their options and potentially exiting the market if the costs associated with improving EPCs prove to be overwhelming.

However, there's a significant caveat to this strategy. If too many individuals opt for the "wait and see" approach, only to decide to remain in the market later, they might face a bottleneck situation concerning labour and materials. Additionally, they could potentially face fines ranging from £5,000 to £30,000 under the proposed rules for failing to comply within the stipulated timeframe.

Interestingly, the survey highlighted that the majority of respondents (60%) had not sold any bridging loans in the past year specifically for financing energy efficiency refurbishments. Furthermore, 34% of respondents anticipated that the amount of bridging loans for this purpose would either remain stagnant or decrease in the coming year.

An overwhelming 69% of participants expressed their desire for lenders to provide tailored lending solutions to clients seeking to enhance the energy efficiency of their properties. Many suggested that borrowers who successfully completed energy efficiency work should have access to better interest rates.

Maeve Ward shed light on the situation, emphasizing the existence of various alternative solutions available: "There is more than one way that somebody will be able to increase the EPC rating on a property, or properties within a portfolio. It's about brokers and lenders making it more widely known as to how they can source those, so that the solution the customer goes with is the right outcome for them."

She further emphasized the significance of the specialist market, which offers flexibility and a common-sense approach for those facing property-related challenges. Such individuals require understanding and a sense of intentionality when dealing with their unique circumstances.

The research findings were made public concurrently with the launch of Mercantile Trust and Elmhurst Energy's EPC Hints and Tips guide for landlords and property investors. This comprehensive guide covers essential aspects, including EPC basics, benefits and advantages, funding options for EPC improvements, available opportunities, and sources of assistance.

Maeve Ward urged brokers to download and share the guide with their property investor clients, emphasizing that doing nothing is not an option. The guide provides valuable information to create a viable strategy in addressing the EPC issue, including financing options for improving rental properties. Bridging lenders like Mercantile Trust have already been actively funding energy efficiency-related refurbishments and are prepared to meet the inevitable surge in demand.

In conclusion, time is of the essence, and further delay is strongly discouraged. All stakeholders within the industry must play their part in meeting the demands of the evolving energy efficiency regime. By actively engaging with the provided resources and taking proactive measures, brokers, lenders, landlords, and property investors can navigate the impending changes successfully and secure a sustainable future.