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New 2025 EPC Regulations For All Rented Property

The government has recently proposed new EPC regulations that will change the Minimum Energy Efficiency Standards, it’s planned to take effect in 2025; these changes will impact the domestic rental property in England and Wales. Currently, the minimum energy efficiency standards (MEES) allowed for rented properties are a minimum of an E rating on their Energy Performance Certificate (EPC).

C or above

The new EPC regulations would mean that from 2025, your rented property would need to have a certification rating of C or above. The changes are to ensure homes are more energy-efficient and to reduce carbon waste, progressing towards the government’s net-zero targets. Houses in the UK are generally older than in the rest of Europe, and considerable improvements can be made to the energy efficiency in our homes. These changes will upgrade the private sector homes EPC which helps to reduce energy bills and increase comfort for tenants as homes will be warmer, whilst focusing on reducing the delivery of the statutory fuel poverty target of EPC by a deadline of 2030.

Failure to comply

However, these changes will be phased in, starting with new tenancies from 2025 and then all tenancies from 2028 and apply to all domestic and private rental properties on a lease between 6 months to 99 years. If you do not comply, you could face penalties of up to £30,000.

What is an EPC rating?

The EPC rating was first introduced in 2007 in both England and Wales, the Energy Performance Certification rates a property’s energy efficiency on a scale from A to G, A being most efficient and G being least efficient. It’s the responsibility of the landlord to provide tenants with an EPC rating. At the moment, landlords need to get a new EPC every ten years. Aiming for a low EPC rating can mean lower energy bills and reduce your carbon footprint, this makes your property more attractive to potential buyers or tenants. 

How will these new EPC regulations impact landlords?

Having to jump from a minimum E rating to a C can potentially cost landlords thousands. Landlords will be expected to pay for either insulating their properties to retain heat or use other ‘fabric first’ features that can help to improve heating and lighting.

Lettings market changes

Under the new EPC regulations, if you want to advertise your property for rental from 2025 and onwards, you’ll be required to give lettings agents an updated and compliant EPC for the property they are advertising. You will not be able to advertise your property if it does not have a rating of C or above. After the consultation on 30th December, the government has announced that there will be changes to the minimum energy efficiency standards for England and wales only. All rental properties will need a minimum EPC rating of ‘C’ or above by 2025. The new regulations will start with new tenancies first, followed by all tenancies by 2028.

What landlords need to do to improve their EPC rating?

Firstly, you’ll need to prepare, especially if your rating is at E to G. You can start by making sure that you have done the following to improve your EPC rating.

1. Improve your lighting to LED light bulbs

2. Insulate the walls and roof

3. Improve windows with double or triple glazing

4. Install an energy-efficient boiler

5. Use a smart meter


Generally investing in renewable energy will help to improve your EPC of your rental property, especially using products such as solar panels and ground-source heat pumps.

Financial help to fund the new EPC regulations

Improving and upgrading your energy sources can be costly. Some landlord associations and regulatory bodies are calling for financial support to help landlords make these improvements to their rental properties. The Association of Residential Letting Agents (ARLA) believes that the new rules and requirements may not be realistic or achievable for many landlords to meet the standards required.

ARLA

Landlords and their letting agents have already been impacted by tax changes, and some are struggling to find support to tenants who have covid-19 related arrears. The ARLA is concerned about the financial impact on landlords and its meaning there will be less rental properties available to tenants who need it. Now that the consultation stage is complete and the changes to the minimum EPC rating is confirmed, landlords can start working to improve their rental properties EPC rating. You can keep up to date with current EPC guidelines on the government website.