From the beginning of 2025, all newly rented properties will need to have a certification rating of C or above. Existing tenancies will have to ensure compliance until 2028. Then all rented residences from 2028 will follow, and new regulations will apply to every domestic or private rental property on a lease between 6 months to 99 years.
If landlords do not comply, they could face penalties of up to £30,000.
At the moment, the minimum energy efficiency standards (MEES) allowed for rented properties stay at a minimum of an E rating on their Energy Performance Certificate (EPC).
The government has committed to upgrading as many private rented sector homes as possible to Energy Performance Certificate (EPC) Band C by 2030, where practical, cost-effective and affordable.
The GOV.UK website recently asked for public consultation to develop a suite of policy proposals towards achieving this, including:
- reducing energy bills and increased comfort for tenants and supporting delivery of our statutory fuel poverty target of EPC C by 2030
- potential property value improvements for landlords
- delivering carbon emission savings over Carbon Budgets 4 and 5, making progress towards our net-zero target
The Association of Residential Letting Agents (ARLA) noted that the newly proposed minimal EPC requirements are tough, and may not be realistic or achievable for many landlords to meet the standards required. In addition, the ARLA is concerned about the financial impact on landlords and its meaning there will be fewer rental properties available to tenants who need it.
The government is currently analysing feedback it received from the public during the last and this year. It will publish the updates for the policy on the official website.
What do landlords need to do to improve the EPC rating of their property?
If your property EPC rating is from E to G, you have to make preparations. You can start by ensuring this helpful checklist has all the marks checked.
- Replace your lighting to LED light bulbs
- Insulate the walls and roof (grants may still be available)
- Install windows with energy-efficient double or triple glazing
- Install a new energy-efficient boiler
- Ask your energy provider to install a smart meter
Consider these works an investment in renewable energy. You can also improve the EPC of a rental property, by using products such as solar panels and ground-source heat pumps.
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