The government has announced plans to introduce new rules for landlords, which will require rental homes to have an EPC rating of C or above. Properties that fall short of this target will be regarded as unrentable.
Are landlords prepared for these proposed changes and what actions can they take to ensure that their properties are fully compliant?
An energy performance certificate (EPC) is a method for helping property owners understand the energy efficiency of their homes, which was first introduced in England and Wales in 2007 and later expanded into both Scotland and Northern Ireland.
EPC’s are required by landlords when renting their properties and it is a legal requirement for tenants to be provided with a copy of a valid EPC document.
To obtain a valid EPC a homeowner must first have their property assessed by an accredited assessor.
The assessor will visit the property and examine several features of the home including floor and loft insulation, wall cavities, boilers, hot water tanks and radiators, heating controls and double glazing.
Details about your home and its energy features are then fed into a specialised software program, which determines the overall energy efficiency of the property.
Once the assessment has been completed, the property will receive a single EPC rating between ‘A’ (highest rating) and ‘G’ (lowest rating).
Since 2018 it has been required that rental properties have an EPC rating of ‘E’ or above. However, since taking power in February 2024, the new Labour government has announced its intention to reintroduce plans to raise the required EPC rating for rental properties to ‘C’ or above.
Although no date has been announced for when the increase in EPC requirements will come into effect, it is widely believed that an announcement and timetable for necessary changes will come in 2025.
According to Dataloft, over two-thirds of landlords currently own at least one property that does not meet the new requirements for the government’s proposed EPC ‘C’ targets.
Further sources from Dataloft suggest that while most landlords are aware of these potential changes, many will be watching for further clarification as they will need to make appropriate changes to at least some of their rental properties:
If the government does go through with its current plan to increase the EPC threshold for rental properties, landlords will need to act quickly to ensure that their properties are fully compliant to avoid potentially costly fines that could have an even greater impact on their bottom line.
With over 40 years of marketing properties for rent in Manchester, Cheshire and Tameside, Edward Mellor is perfectly placed to help landlords find the perfect tenants for their rental properties.
We also offer a comprehensive package of property management services to help landlords ensure that their properties are safe, compliant and profitable without all the hassle associated with running a rental portfolio.
To find out more about preparing for changes to EPC legislation and more, simply contact our friendly and professional team using the link below.
Contact Edward Mellor Property Management
Related Pages
Landlords | Book a Rental Valuation | Why is Compliance so Important?
