Stricter energy efficiency regulations will affect the minimum requirements for Energy Performance Certificates (EPC) in the Private Rented Sector (PRS).
In the proposed changes, the Government intends to require all privately rented properties to reach an EPC rating of C by 2030.
What is an EPC?
In short, an Energy Performance Certificate, more commonly referred to as an EPC, is an assessment of the energy efficiency of a property.
An EPC is graded from G to A, with an A being the most energy-efficient.
Rental properties require an EPC rating to be let, and currently, the minimum standard for rental properties is an E rating.
An individual EPC is valid for 10 years, and it’s important that you remember to get a new EPC before your property’s current one expires.
What are the proposed changes to EPC requirements for the private rented sector?
The current minimum standard of an E rating was first introduced in 2018 thanks to the Minimum Energy Efficiency Standards (MEES), a set of regulations for the private rented sector first introduced in 2015.
The new minimum standard of a C rating for rental properties will first come into effect in 2028.
All new tenancies will be required to have earned an EPC rating of C from 2028, and by 2030 all privately rented properties will need to reach this new minimum standard.
This new standard aims to improve energy efficiency across the country, in line with the UK’s net zero carbon emissions goals, and will also save renters money in the long run as better EPC ratings should lead to lower energy bills.
How will the new EPC requirements affect me as a landlord?
If your rental property does not have an EPC rating of C or higher, you will need to invest in order to bring the property’s energy efficiency up to standard.
And even if your property’s EPC rating is C or higher, if it’s set to expire before 2030 it could be worth investing to ensure it passes the new minimum standard.
About half of all PRS properties are below the new standard EPC rating of C, so this change will force a lot of landlords to upgrade.
While this will come with a financial burden, it’s also an opportunity to take stock and reevaluate.
Higher EPC ratings are naturally more appealing to tenants as it means they will be saving money on their energy bills.
And while you’re improving your rental property’s energy efficiency, it could be a good opportunity to renovate and redecorate.
Regardless of your current financial position, you still have time to prepare for the upcoming changes.
If you would like to discuss the changes, how it will impact you and get personal advice and guidance, contact your Reeds Rains branch to speak with a local lettings expert.
Alternatively, book a free lettings consultation to find out how much you could let your property for.
Reeds Rains E-marketing Executive
