What are the new EPC rules for landlords?
THE HEADLINES
In brief, by October 2030 (pushed back from 2028), all rented properties for new and existing tenancies will need to achieve an Energy Performance Certificate rating of C and above.
And, the government will be implementing a NEW way to measure them. Also, there will be a reduction in the investment cap for you to make improvements. It’s been taken down to £10,000 from £15,000 (there are exceptions for homes under 100k).
Keep reading for the full low-down.
NOTHING STAYS THE SAME IN THE RENTED SECTOR
And don’t you know it.
If you’re a landlord in Brighton, Hove and the surrounding areas, pay close attention. (Again.) More changes are happening in the rented sector, this time surrounding EPCs (Energy Performance Certificates).
Did you know that, according to recent government statistics, 52% of homes currently let to tenants have an EPC rating of C or below? To remain compliant, you need to mark at C or above. So, this situation must change.
ADVICE FROM PROPERTY MOVES
Are you one of the 52%?
This blog sets out, in precise, simple terms, what those changes are and what they are likely to mean for you. In our opinion, you should think about the implications of these changes. As ever, don’t sit on your hands if you need further information – we’re always here to help and offer advice. Not least, regarding where to prioritise any upgrades you may need to take on board. Give Property Moves a call on 01273 321 333.
OK, so…back to basics first.
WHAT EVEN IS AN EPC? AND WHY WERE THEY INTRODUCED?
Here’s where we are right now:
An Energy Performance Certificate is a document that assesses a property’s energy efficiency, with a score from A (extremely efficient) to G (least efficient). Currently, a third-party Domestic Energy Assessor will work this out based on the estimated COSTS per square metre of heating, lighting and hot water in a property. Think: how much heat is escaping, visualised as a series of pound signs.
It’s called the Standard Assessment Procedure (SAP) and includes data collected on walls and insulation, a heating system, windows and doors. An EPC is currently valid for 10 years.
The idea behind this was and is to improve housing quality and reduce carbon emissions. But, right now measurements focus on COSTS rather than efficiency and greener solutions. For example, a landlord could simply fit a new boiler to reach a C rating as generally, they’re cheaper to run.
THE NEW RULES
Here’s where we’re going to be:
As mentioned, the deadline is now 2030, but time can move fast.
The NEW assessment criteria will be called the Home Energy Model and will involve the following:
- Fabric performance: how well does the property retain its heat? This one is non-negotiable. You MUST get this right, then in broad terms you can choose between numbers 2 and 3.
- Heating system performance: the carbon impact and efficiency of heating.
- “Smart” readiness: how easily could the flat or house take on smart energy technology?
- Energy costs: shown as an estimated annual energy bill – not a rating.
Bear in mind: EPCs obtained before 1st October 2029 will continue to follow the current methodology. They’ll stay valid for 10 years. Therefore, you can continue letting your property with an energy rating of C or above until the certificate expires.
However…EPCs issued AFTER OCTOBER 2029 will follow the NEW MODEL.
CHANGES TO COSTS AND EXEMPTIONS
There will be a cost cap. Previously £15,000, and as part of the Government’s Warm Homes plan, the limit you can invest on improvements will be £10,000. For properties valued at less than £100,000, the cap will be tapered. For example, an £80,000 home will have a cap of £8,000.
If you have spent money on upgrades from October 2025 onwards, and up to October 2029, this will count towards the cap even after the introduction of the new EPCs.
Top tip: If your EPC has C rating, keep it and renew it closer to 2029.
With us so far?
HOW COULD THIS AFFECT YOU?
Well, there’s no easy way around this.
Many landlords, it would seem, aren’t too keen on the financial burden that could be coming their way. Several surveys indicate a disconnect between what needs to be done and the means, willingness or wherewithal to do it. Again according to government data, the average required spend to bring a private rented dwelling up to scratch is £6,864 – a fair dent, we’re sure you will agree.
WHAT PROPERTY MOVES RECOMMENDS
You don’t need us to tell you that Brighton and Hove boasts exceptional period properties. It’s why so many people move here. They’re not automatically exempt from the new EPC rules, although there will be specific exemptions if improvements would damage the building.
Nevertheless.
First, don’t panic. Yes, you will need to comply fully with the new rules, but you do have time. Think about making staged upgrades, with lower-carbon, energy-efficient changes taking priority if you can, as this is likely to be the government’s focus.
See it as sensible sequencing.
Actually, do you KNOW your properties’ EPC ratings? Anecdotally, a surprising number of landlords are still unaware. These reports are exceptionally good value and will show clearly what you need to fix. Also, take the time to understand the assessment when you get it; you may only need a small investment to bring it up to a “C”.
Importantly, be aware of bad-faith actors. Scammers in the trades – and there are a few – could offer quick fixes but deliver disastrous results that shatter your ratings. Take care to obtain references and read all their reviews.
Do take photographs and keep receipts as proof of how much you’ve spent on any changes you make. It’s just a way to ensure you’re covered, if you need to provide evidence.
Again, contact us for advice tailored to your circumstances.
CONSIDER FABRIC FIRST
In other words, how well the property keeps the heat inside, rather than letting it pointlessly – and wastefully – escape. Examples could include:
- Roof insulation
- Cavity wall insulation
- Hot water cylinder insulation
More expensive options involve renewable energy sources such as solar panels – an investment, yes, but a powerful future-proofing option to help you meet your EPC obligations.
IN SUMMARY
Get informed, get ready. While the pace of change in the private sector appears relentless, we know you want to do the right thing. And no doubt you will.