New EPC Regulations for Landlords in 2025
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).
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, 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. 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.
New EPC Regulations
Given the Government’s public commitment to net zero by 2050 at the recent international COP 26 hosted in Glasgow last year, it is looking as if the new standards will come in or at least something very close to the proposed changes. The new Bill states:
The Secretary of State must amend the Energy Efficiency (Private Rented 15 Property) (England and Wales) Regulations 2015 (SI 2015/962) to require that, subject to subsection (2)—
(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028 where practical, cost-effective and affordable as defined under section 1(4).
What is the current 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 is the responsibility of the Landlord to provide their tenants with an EPC rating. Currently landlords need to get a new EPC every ten years.
Aiming for a high 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.
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.
What do Landlords need to do to improve their EPC Rating?
You will need to prepare, especially if your rating is at E to G, understand what options are available to you, what changes to energy efficiency measures are appropriate for your property. Consider the cost element wisely ensuring that you get the best return on your investment, both for value for money and effect upon your EPC. You can start by making sure that you have done the following to improve your EPC rating.
- Improve your lighting to LED light bulbs
- Insulate the walls and roof
- Improve windows with double or triple glazing
- Install an energy-efficient boiler
- 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.
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 may be fewer rental properties available to tenants who need them.
How can Summit Environmental help?
Who are Summit Environmental? Summit Environmental is a consultancy specialising is assisting the property sector with Asbestos, Fire, Legionella and Energy Performance Certificates. Summit Environmental can offer you a range of EPC’s regardless of your needs, please contact us for advice on
- Non Domestic – Non-Domestic ‘As Designed’ EPC – Part L2A
- Non Domestic EPC Non-Domestic ‘As Designed’ EPC – Part L2A
- Domestic – Domestic ‘As Designed’ EPC – Part L1A
- Domestic – Domestic ‘As Built’ EPC – Part L1B
- Green Deals advice and consultancy
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