A big talking point amongst landlords and agents currently is the proposed plan from the Government to get rental properties to an EPC rating of C or above. Although there is still much uncertainty on this subject as to the final rulings on the matter, landlords should be planning ahead for this now.
Back in 2018, landlords faced having to ensure their rental properties were at an EPC Rating of E or above. The proposed plan coming into place is for rental properties to have a rating of 'C' or above from 2025. The proposed bill states:
“The Secretary of State must amend the Energy Efficiency (Private Rented 15 Property) (England and Wales) Regulations 2015 (SI 2015/962) to require that, subject to subsection (2)—
(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028, where practical, cost-effective, and affordable as defined under section 1(4).”
EPC Ratings are becoming more of a deciding factor for tenants when looking for their next home, particularly with the current cost of living crisis. Therefore the best course of action for landlords is to begin planning ahead and action any works they can now that will boost the EPC rating upwards. Start off by looking at the recommendations in your current EPC report. What is the potential rating, and what do you need to do to get it there?
This is also something to consider when purchasing your next investment property. Is the EPC currently low? Can I get it to an EPC Rating C in a cost-effective way?
We are still unsure on the final standpoint from the Government when the changes come into place in 2025. However, my opinion is that there will be a similar standpoint to what is currently in place. If you have a property that is unable to meet a rating of an E or above, the Government puts in place an exemption so you can continue to let that property out. Landlords are currently required to complete the works they can do in order to improve the EPC Rating, meeting a ‘cost cap’ set by the Government.
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.