EPC requirements are changing. Plan for it now.
EPC requirements are changing.
Plan for it now.
We’ve heard a lot this year about poor insulation standards in the UK’s housing stock. It’s a widespread problem that needs to change if emissions targets are to be met. It’s also very relevant to households as they struggle to avoid the impact of escalating fuel costs.
Within the property rental sector, change can be effected by regulation. Back in 2018, the government passed legislation under which rental properties had to reach an EPC rating of Band E. The change caused a lot of unease at the time. Landlords owning properties that were difficult to improve faced considerable expense. There were some grant schemes, but these were complex. Many landlords either sold properties to avoid the issue or passed the cost of improvements onto tenants via increased rents.
Moving to Band C
Sadly, some landlords still flout the rules. The affordability of rent is often more of a priority for tenants than the validity of an EPC certificate. But the issue of energy efficiency hasn’t gone away. Its importance is increasing. Now it’s proposed that in 2025, the minimum energy efficiency rating required for rental properties will be set at Band C.
While the aim of the measure is sound, the practicalities are concerning. Many properties in the UK, whether owner-occupied or tenanted, will never be able to achieve Band C standards. Those that can will need substantial investment in energy-saving measures, which could lead to further rent increases.
Even the government acknowledges that the new regs could prove expensive. Their estimates suggest costs could average £4,700 per property, but their intent is serious and fines of £30,000 are on the cards for non-compliant landlords.
Don’t delay
The change applies to new tenancies from 2025 and existing ones by 2028. And, let’s face it, 2025 is very close when you think about the amount of work that may be required. Grant funding may take some time to be secured and It’s already hard to get hold of tradespeople or source building materials. Improvements take time, and often more time than estimated.
Perhaps the immediate priority is to double-check current standards are being met. If this has been neglected, tackle it as a priority. Then gain an understanding of what’s required to reach Band C and the funding available. Is the upgrade possible? Is it financially viable? Maybe your portfolio needs to be re-examined?
Improved energy performance depends on three key areas, heating, insulation and windows and doors. Let’s take a quick look at each of these.
Install energy-efficient heating and hot water systems
This can include upgrading to a more efficient boiler, installing energy-efficient radiators, or installing a heat pump. These measures can significantly reduce the amount of energy required to heat a property and improve its EPC rating.
Install insulation
Consider the walls, roof and floor of a property. The right insulation can retain heat more effectively. Even if insulation is in place, check it. The recommended thickness for loft insulation has increased and new insulating materials are producing better thermal performance.
Upgrade windows and doors
Double or triple-glazed windows and doors can make a big difference – and enhance the appearance of a property. Windows and doors are rated like domestic appliances. Look out for those with A or A+ ratings. Bottom of Form
Take stock in the new year
If you’ll excuse what sounds like a pun, energy and emissions are both hot topics. The proposals will have a significant impact on landlords across the UK who should ensure they’re prepared for the change. Pop a note in your calendar to assess your situation early in the new year. Plan now and you won’t get caught out.