With regulatory deadlines fast approaching and profitability already squeezed, landlords must take a proactive approach to cashflow forecasting. Whether you own a single rental or manage a portfolio, keeping a close eye on your financials – particularly in light of upcoming EPC changes – is no longer optional; it’s essential.
The EPC deadline: What you need to know
Energy efficiency is taking centre stage in property legislation. Under current regulations, properties must have a minimum EPC rating of E to be let. But from 2028, all new tenancies will require a minimum EPC rating of C and, by 2030, this will apply to all rental properties.
What’s more, changes to the way EPCs are calculated are expected to come into effect in 2026. These updated metrics – with details expected soon – could shift the goalposts further, potentially moving previously compliant properties out of bounds.
For many landlords, this will mean costly renovations, from upgrading heating systems to improving insulation and installing double glazing or solar panels. However, there are a few financial silver linings:
- Grants and funding may be available, particularly for lower-income households.
- Until 31 March 2027, there’s zero-rated VAT on a range of energy-saving materials, including insulation, solar panels, and heat pumps. This is a potentially significant saving if you act in time.
Profit Squeeze
Landlords are already under pressure. Recent changes include:
- Stamp Duty Land Tax (SDLT) increases on additional properties — rising from 3% to 5%.
- The SDLT threshold reduction from £250,000 to £125,000 in April.
- Ongoing inflation in maintenance costs.
- For mortgaged properties, monthly outgoings remain fixed — even during void periods.
The combination of increased regulatory costs and squeezed margins makes cashflow forecasting more critical than ever.
Why forecasting matters
A cashflow forecast is not just a static budget – it’s a dynamic decision-making tool that can help landlords:
- Spot shortfalls in advance, giving time to arrange funding or adjust spending.
- Plan renovation works around expected void periods or routine maintenance.
- Analyse portfolio performance and decide whether to retain or sell underperforming assets.
How can we help?
At Harold Sharp, we work with landlords to ensure they are financially prepared. Our team can:
- Build tailored cashflow forecasts
- Model different property or finance scenarios
- Advise on tax liabilities and timing
- Introduce you to other professionals in our network (e.g. surveyors, EPC assessors, finance brokers)
To avoid last-minute stress (and costly surprises), we recommend landlords:
- Review current EPC ratings and arrange surveys to assess what work is required.
- Prioritise upgrades that deliver the best return or are essential for compliance.
- Seek professional advice to understand the financial and tax implications.
- Keep meticulous records — with Making Tax Digital on the horizon, this is more important than ever.
Contact us today for a no-obligation conversation.
Rebecca Holloway
Head of Property | Associate Director
0161 905 1616
rh@haroldsharp.co.uk