Update – Changes to the Energy Performance Certificate (EPC) Regulations

The landscape of lettings in the UK is evolving once more, and landlords need to be ready. Unveiled recently, amendments to the Minimum Energy Efficiency Standards (MEES) for England and Wales stipulate that all rental properties must achieve an Energy Performance Certificate (EPC) rating of ‘C’ or higher by 2028.

These changes underline a resolute commitment by the UK Government to mitigate the environmental impact of domestic energy use, making energy efficiency a priority and progressing towards a greener, more sustainable future. This shift not only represents an important stride in addressing the climate crisis, but also aims to make homes more comfortable and reduce energy bills for tenants.

As a landlord, it is imperative to familiarise yourself with these changes to the EPC regulations. Not only will it be a legal obligation, but such energy efficiency improvements could enhance the attractiveness of your property to prospective tenants, potentially securing longer tenancies and adding to your property’s value.

The energy efficiency rating of rental properties has become a topic of hot debate (no pun intended) in the private rental sector. In 2018, changes to Minimum Energy Efficiency Standards regulations meant landlords needed a rating of  at least E on their EPC before their property could be legally advertised for let. Then, in 2021 further modifications to the MEES were proposed and are set to come into effect in 2025. As a landlord, it’s important to stay ahead of changing energy efficiency standards while also making your property greener, so that it contributes to reducing carbon emissions.

In this guide, we’ve got everything you need to know about improving your EPC rating and how to make your property investment more environmentally sustainable.

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What’s happening in 2025?

The government announced changes to the Minimum Energy Efficiency Standards for England and Wales, proposing that all rental properties must have an EPC rating of C or higher prior to a new tenancy as of 1st April 2025. There will be  ‘compliance window’ during which landlords must make improvements before the new higher minimum threshold is applied all tenancies (both new and existing) from 1st April 2028. Landlords who fail to comply face penalties between £5,000 and £30,000.

Why is the change coming into effect?

The government is hoping that regulation changes will make more homes more energy-efficient, thus reducing carbon emissions on the way to the UK, reaching net-zero by 2050. It also means that tenants will pay lower utility bills as they consume less energy.

What are the current EPC regulations for landlords?

From 2018, landlords were required to have an EPC rating of E or higher for new tenancies. That’s now changed to all tenancies, and any rental home without at least a rating of E cannot be legally let.

Just to clarify: what is an EPC?

EPC stands for energy performance certificate and is required for all homes in the UK. It states the energy efficiency of a property, rating it from A to G, with A representing an energy-efficient home and G representing one that isn’t resourceful.

A Domestic Energy Assessor carries out the EPC, which is valid for 10 years. As part of the inspection, the assessor looks at:

• The windows
• Year the property was built
• Roof, walls and insulation
• Building measurements
• Boilers and heating systems
• Fireplaces
• Lighting
• Renewable energy devices

After the assessment, all of the above is considered, with the property awarded a rating. EPCs also carry an Environmental Impact Rating, which uses the government’s Standard Assessment Procedure (SAP) to give you a numerical score from 1-100 SAP points.

How do I check my EPC rating?

You can find your EPC here if you don’t already know it or cannot locate the report. The report provides a rating as well as a breakdown of what’s needed to improve your EPC. All reports are accompanied by a section of recommended actions that lists cost-effective measures to improve energy efficiency.

Suggestions may include actions like ‘improve insulation’. You can go through the recommended improvements and see where it might be possible to make changes and upgrade your energy performance rating.

How can I improve my EPC rating? 

Insulate your property

Insulating your property is one of the most effective ways to improve your EPC rating. Insulation helps to prevent heat loss, which reduces your energy bills and makes your home more comfortable. You can insulate your property in various ways, including:

• Loft insulation: Insulating your loft can prevent heat loss through the roof. This can reduce your energy bills by up to 25%.
• Cavity wall insulation: If your walls have cavities, you can fill them with insulation material to prevent heat loss. This can reduce your energy bills by up to 15%.
• Solid wall insulation: If your walls do not have cavities, you can insulate them from the outside or inside. This can reduce your energy bills by up to 40%.

Upgrade your heating system

Your heating system is another factor that affects your EPC rating. If your heating system is old and inefficient, it can lead to higher energy bills and a lower EPC rating. Upgrading your heating system can improve your EPC rating and save you money in the long run. Here are some ways to upgrade your heating system:

• Install a high-efficiency boiler: A high-efficiency boiler can save you up to £300 per year on your energy bills.
• Install thermostatic radiator valves (TRVs): TRVs allow you to control the temperature in each room, which can save you money on your heating bills.
• Install a smart thermostat: A smart thermostat allows you to control your heating remotely and can save you up to £150 per year on your energy bills.

Switch to energy-efficient lighting

Switching to energy-efficient lighting is an easy way to improve your EPC rating. LED bulbs use up to 90% less energy than traditional bulbs and last up to 25 times longer. By switching to LED bulbs, you can reduce your energy bills and improve your EPC rating.

Use renewable energy sources

Using renewable energy sources is a great way to improve your EPC rating and reduce your carbon footprint. Here are some renewable energy sources you can consider:

• Solar panels: Solar panels can generate electricity from the sun’s energy, which can reduce your energy bills and improve your EPC rating.
• Wind turbines: If you live in a windy area, you can consider installing a wind turbine to generate electricity.
• Ground source heat pumps: Ground source heat pumps use the heat from the ground to provide heating and hot water. This can reduce your energy bills and improve your EPC rating.

Other ways to improve your EPC rating

• Draught-proofing: Draught-proofing your home can prevent cold air from entering and warm air from escaping. This can improve your EPC rating and reduce your energy bills.
• Double glazing: Installing
• Double glazing: Installing double glazing windows can prevent heat loss and noise pollution, which can improve your EPC rating and make your home more comfortable.
• Energy-efficient appliances: Using energy-efficient appliances, such as washing machines, dishwashers, and refrigerators, can reduce your energy bills and improve your EPC rating.
• Reduce water usage: Reducing your water usage can also improve your EPC rating. You can install water-saving devices, such as low-flow showerheads and taps, to reduce your water usage.

FAQs:

Q: What is an EPC rating? A: An EPC rating is a measure of a property’s energy efficiency. It ranges from A (most efficient) to G (least efficient).

Q: How long does an EPC rating last? A: An EPC rating is valid for 10 years.

Q: Do I need an EPC rating? A: Yes, if you are selling or renting out your property, you need an EPC rating.

Q: How much does it cost to get an EPC rating? A: The cost of getting an EPC rating varies depending on the size and location of the property. It typically costs between £50 and £120.

Update: In the spring statement on 23rd March 2022, Rishi Sunak announced that VAT on green home improvements will be cut from 5% to zero for the next 5 years. This means that homeowners will save significant amounts in tax when installing solar panels, heat pumps, and insulation.

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