Attention Landlords: What You Need to Know About the Proposed EPC Changes
One hot topic of discussion among landlords and agents these days is the government's plan to require rental properties to achieve an Energy Performance Certificate (EPC) rating of C or above. While there is still some uncertainty surrounding the final regulations, it's crucial for landlords to start planning ahead.
Back in 2018, landlords were already obligated to ensure that their rental properties had an EPC rating of E or above. However, under the proposed plan, starting from 2025, rental properties will need to reach at least a rating of 'C' or above.
According to the proposed bill, the Secretary of State is intended to modify the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. This means that all new tenancies must have an energy efficiency performance of at least EPC Band C by December 31, 2025. Additionally, all existing tenancies must achieve an EPC Band C by December 31, 2028, where it is practical, cost-effective, and affordable, as defined under section 1(4).
Now, more than ever, tenants are considering EPC ratings when searching for their next home, especially given the current cost of living crisis. Therefore, it is vital for landlords to start planning ahead and take the necessary actions to improve their property's EPC rating. A great starting point is to review your current EPC report and identify the potential rating of your property. What steps can you take to reach your desired rating?
It's also crucial to consider the EPC rating when purchasing your next investment property. Is the current rating low, and can you improve it to an EPC Rating C in a cost-effective manner?
Although we are still awaiting the government's final decision on the changes that will take effect in 2025, it's highly likely that the requirements will be similar to the current regulations. In cases where a property cannot achieve a rating of E or above, the government may grant exemptions to allow landlords to continue letting those properties. However, landlords are currently required to carry out improvement works within a government defined "cost cap" to enhance the EPC rating.
In conclusion, landlords should start preparing for the future changes in EPC requirements. By taking proactive steps now, you can not only meet the upcoming regulations but also provide tenants with more energy-efficient homes. Remember, improving your property's EPC rating can positively impact its attractiveness in the rental market and potentially increase its value. So, let's act now and make a difference!
More information will become available on this in due course, which ourselves as agents will share with our clients to best inform and prepare them. However should you like to have a discussion on your individual property and its needs, please reach out to your local branch or dedicated property manager, and we can put you in contact with a qualified EPC assessor.