More than half of landlords will increase rents to cover energy efficiency improvements, a survey has shown, after the cost of eco-upgrades drastically increased.

Investors now need to shell out thousands of pounds more for mandatory green improvements because of the escalating supply chain crisis and exorbitant energy costs, experts have warned. All newly let rental properties must have an Energy Performance Certificate rating of at least band C by 2025, and by 2028 for existing lets, under government plans.

Landlords who have made green improvements spent £8,900 on average, according to Shawbrook Bank. However, the bank’s Emma Cox warned that labour and material shortages would increase bills for landlords yet to start the work. 

She said: “Where usually three to six months was advised as a timescale for improvements, the supply chain crisis has pushed this contingency up to nine to 12 months.

“Likewise, mortgage brokers have always suggested landlords keep 10pc of rent aside for unexpected costs, but this buffer is now more like 20pc to 25pc. We expect tenants could be caught in the crossfire as landlords seek to recoup some of the costs.”