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.

Ensuring that your rental property is energy efficient is not only good for the environment but can also save you money on energy bills and improve your tenant’s comfort. The Energy Performance Certificate (EPC) rating is a useful tool that rates a property’s energy efficiency on a scale of A to G. The higher the rating, the more energy-efficient the property is. This article will explore the benefits to improving your EPC rating in your rental property and how to do it.

Why should you consider improving your EPC rating in your rental property?

• Lower energy bills: Improving your EPC rating can help you save money on energy bills by reducing the amount of energy your property uses. This could involve installing insulation, upgrading your heating system, or upgrading your windows to double-glazed.
• Increase property value: A higher EPC rating can also increase the value of your property, making it more attractive to potential buyers or tenants. An energy-efficient property is becoming increasingly sought after, and you can use this as a selling point when advertising your rental property.
• Meet legal requirements: Since 2018, it has been a legal requirement for all rental properties in England and Wales to have a minimum EPC rating of E. This means that if your property has an EPC rating of F or G, you will be unable to rent it out until you make the necessary improvements.
• Attract tenants: An energy-efficient property is becoming increasingly desirable to tenants, and a high EPC rating could give you a competitive advantage in a crowded rental market. Energy-efficient properties are typically cheaper to run, and tenants are likely to appreciate the lower bills.

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How to improve your EPC rating

• Insulation: Insulation is an effective way to improve your property’s EPC rating. This could involve loft insulation, cavity wall insulation, or floor insulation. Insulation works by reducing the amount of heat lost through the walls, floor, and roof, keeping your property warmer for longer.
• Upgrade heating system: Upgrading your heating system is another effective way to improve your EPC rating. This could involve installing a new boiler, replacing old radiators, or installing underfloor heating. A more efficient heating system will help to reduce your energy bills, and make your property more comfortable for your tenants.
• Install double-glazed windows: Installing double-glazed windows can help to reduce heat loss through your property’s windows, keeping your property warmer for longer. This is particularly effective during the colder months, and it can also help to reduce noise pollution.
• Use energy-efficient light bulbs: Energy-efficient light bulbs can help to reduce the amount of energy your property uses, without compromising on the amount of light produced. They typically use around 80% less energy than traditional incandescent bulbs, and they last up to 25 times longer.

FAQs

1. What is an EPC rating?

An EPC rating is a rating that shows how energy-efficient a property is, on a scale of A to G. The higher the rating, the more energy-efficient the property is.

2. How is the EPC rating calculated?

The EPC rating is calculated based on factors such as insulation, heating, and lighting.

3. How long does an EPC rating last?

An EPC rating is valid for ten years, after which you will need to obtain a new one.

4. What happens if my property has an EPC rating of F or G?

If your property has an EPC rating of F or G, you will need to make the necessary improvements to bring it up to at least an E rating before you can legally rent it out. Failure to comply with this requirement can result in fines and legal action. Changes to EPC regulation rules will be enforced in 2025 and will see the minimum rating change to a C, so you can read more in our guide on how to improve your rating ahead of the rule changes.

5. How much does it cost to improve an EPC rating?

The cost of improving your EPC rating will depend on the improvements that need to be made. However, many improvements, such as installing energy-efficient light bulbs or upgrading insulation, are relatively inexpensive and can make a significant difference to your rating.

Conclusion

Improving your EPC rating is an excellent investment for your rental property. It not only helps to reduce energy bills and increase property value, but it is also a legal requirement for all rental properties in England and Wales. By making simple improvements such as insulation, upgrading your heating system, and installing energy-efficient light bulbs, you can easily improve your property’s EPC rating. This will not only save you money but will also likely attract more tenants, giving you a competitive advantage in a crowded rental market. Therefore, if you want to future-proof your rental property and ensure it is energy efficient, consider improving your EPC rating today.

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