Advice For Landlords

Table of Contents

• What's Your Point?
• Is There Anything I Should Be Doing?
• Why All The Changes?
• Anything Else?

It was only in April of 2018, where the regulation and requirement of a new tenancy is subject to the Energy Performance Certificate (EPC) being a minimum permitted energy efficiency level of Band E.

At the time, that was considered quite stringent, and created a shockwave through the buy-to-let sector as it meant that any property that didn't adhere to this needed remedial works, and retesting to be eligible to be a letting property. Anyone with a F or G rating was no longer able to legally let the property out, unless there was an applicable exemption in place.

What's Your Point?

Well, the government is now proposing to tighten the restriction even further and is looking to implement this change in 2025-2026.

The new proposal has been shaken up, so that the new minimum requirement is to ensure that all new rental properties are to be of at least an EPC band of C or above.

As mentioned, these are proposed changes, and it remains at a consultation stage. But many in the sector, including us, are betting that these changes willlikely be implemented. 

Is There Anything I Should Be Doing?

The first avenue to take would be to dig out the EPC certificate that will have been carried out by an assessor, failing that, EPC records are publicly accessible online. A simple postcode check will give you results of the addresses in the area, select yours, and you'll be met with plenty of information you can act upon, some of the main points include: 

• Expiry Date
• Certificate Number
• Currently Rating
• Breakdown of Energy Performance Aspects
• The Assessors Recommendations For Improvement
• Estimated Energy Use and Potential Savings
• Information On The Assessor and Their Accreditation Scheme

With this wealth of information, you can make a judgement on whether your property fits the upcoming requirements, and if not, which recommendations to follow up on to look to make improvements for a reassessment.

Why All The Changes?

The world is becoming increasingly conscious of how efficiently we live, and what better place for the government to look than our homes to make some improvements.

Not only does it improve emissions, this push for a higher standard of EPC rating will inevitably save tenants money. Much needed now, more than ever, due to the staggering increases in cost of living and household energy costs. The average tenant with a home improved from a band D - to a band C rating will save on average £285 on their gas, electricity, and water at the current prices. Probably even more by the time any changes are actually implemented.

Anything Else?

The likelihood is, if you already have a tenanted property with long-standing tenants, you'll probably be allowed a little extra time to get things in place. A similar leniency was allowed in 2018 when the last set of major changes happened, the deadline of April 2020 was then set for all privately rented properties within the scope of the regulations, so affected all existing tenancies too.

But in my opinion, nip it in the bud early. If, or when, anything concrete is announced on further changes to the EPC on privately rented properties. We'd suggest seeking the improvements sooner rather than later so you're fully prepared and don't encounter issues closer to the deadline. 

With the increased demand on EPC assessors come the time, they'll likely increase the cost of the assessment due to the demand.