New EPC Changes Are Coming: Here’s How They Affect Landlords
No landlord wants to be a £30,000 fine. However, that is what landlords may face under the new EPC changes. From 1st April 2025, landlords will need to ensure their properties have an EPC rating of C or above. If properties fall below this energy efficiency standard, then they could face a hefty fine. To make sure you are ready for this update, here’s what you need to know:
What Is An EPC Rating?
An EPC, short for Energy Performance Certificate, is a rating given to properties to rate their energy efficiency. The rating goes from A as the most efficient to G, the least energy efficient.
For landlords, it is your responsibility to have an EPC in place for your tenants and to update this EPC every ten years.
What Are The Upcoming EPC Changes?
At the moment, landlords must have an EPC in place. Many prospective tenants will be looking for an energy-efficient property for a lower carbon footprint and reduced utility bills. As a result, sharing an EPC is vital for tenants when they’re looking for a property. At present, landlords must ensure their property has a minimum rating of E.
Under the proposed new EPC changes from the government, there will be a change.
From 1st April 2025, all new tenancies in England and Wales will need to have an EPC rating of C or higher. For existing tenancies, landlords must ensure their property is a C or above by 1st April 2028.
What’s Prompted The Change?
The proposed changes are all part of the government’s plan to achieve its net-zero targets by reducing carbon emissions and increasing energy efficiencies across homes.
However, with energy efficiency being such as important factor for tenants, it can be in a landlord’s best interest to focus on energy improvements to attract tenants and increase a property’s profitability.
What Do Landlords Need To Do?
At the moment, it’s estimated that over half of rental properties have a rating of D or below. This means that they would require improvements to reach a C rating by 2025 or 2028.
The changes that a landlord may need to implement to reach a C rating can vary. For some properties, it may be a simple change of lightbulbs. In other cases, it may require a costly boiler change, increasing insulation or upgrading the windows.
Consequently, due to the potential investment that a landlord may need to make in order to upgrade their rating, it is wise to start planning now. This can be done by conducting an up to date EPC assessment to understand the property’s current rating.
At Assessment Hive, we regularly conduct EPC assessments and offer honest, professional advice on improving their EPC ratings. With our friendly advice, we can help landlords plan and budget for any property improvements they may wish to make to improve the property’s energy efficiency.
EPC Changes: TL: DR
- EPC ratings need to be a C or above for new tenancies from 1st April 2025
- For existing tenancies, a C or above rating needs to be achieved from 1st April 2028
- Breaching the regulations can result in a fine of up to £30,000
- Properties need an EPC before being advertised and must be valid while the property is being let
- Find out your current EPC and if you need to make property changes by booking an assessment.