The UK government is tightening energy efficiency regulations for rental properties, requiring all privately rented homes to have a minimum Energy Performance Certificate (EPC) rating of C by 2030. This change is designed to improve property quality and reduce carbon emissions, but it’s raising concerns among landlords, especially about the potential costs of upgrading their properties, but they shouldn’t rush to make major upgrades just yet.
We’re here to tell you everything you need to know about new EPC regulations, their implications for the rental market, and how to navigate the upcoming legislation to ensure compliance and potentially even save you some money!
What is an EPC?
An EPC rates a property’s energy efficiency on a scale from A to G. A higher rating means better energy efficiency, which reduces energy bills and is better for the environment.
The EPC bands are:
- EPC A = 92–100 SAP points
- EPC B = 81–91 SAP points
- EPC C = 69–80 SAP points
- EPC D = 55–68 SAP points
- EPC E = 39–54 SAP points
- EPC F = 21–38 SAP points
- EPC G = 1–20 SAP points
Why Are the Regulations Changing?
Currently, properties must have at least an E rating. However, the new regulations will raise the minimum requirement to a C by 2030. The goal is to make homes easier and cheaper to heat, lifting over a million renters out of fuel poverty. It’s also part of the UK’s long-term plan to hit net-zero carbon emissions by 2050.
How Will This Affect Landlords?
Many landlords are worried about the costs involved in meeting the new standards. The average cost of upgrading to EPC C is around £6,864. If landlords don’t comply, they could face fines of up to £30,000.
What Can Landlords Do to Prepare?
Here are some tips to help landlords achieve a higher EPC rating:
- Conduct an EPC Assessment: First, landlords should understand their property’s exact EPC score. Many properties only need small, affordable upgrades to improve their rating.
- Prioritise Low-Cost Improvements: Small changes, like adding insulation or switching to energy-efficient lighting, can make a big difference without breaking the bank.
- Explore Renewable Energy: Solar panels or air-source heat pumps can provide a long-term solution, improving the rating while reducing the carbon footprint.
Government Support
Landlords can apply for government grants like the Warm Homes: Local Grant, which offers up to £15,000 to help fund energy efficiency improvements for properties rated D to G. This can significantly ease the financial burden of meeting EPC requirements.
With these new regulations on the horizon, it’s important for landlords to stay informed and take proactive steps to improve their EPC ratings. By planning ahead, making small changes, and exploring available grants, landlords can meet the new requirements and avoid costly penalties.
