EPC Certificates: Upcoming Changes and Landlord Update
The government have recently announced that all rental homes in the UK will need a minimum Energy Performance Certificate (EPC) rating of C by 2030. So why the change and what will it mean for landlords?
EPC Rating - what is it?
It's important homeowners or tenants in rental properties understand the consumption and how efficiently their property is at conserving energy. It's also important to have a regulated system to provide accurate consumption ratings and give prospective tenants an efficiency rating ahead of time, which is where you need an EPC or Energy Performance Certificate. The certificates range from A to G, with A being the best and most efficient, and G being the worst and least efficient. In short, an EPC Rating is a measure of how energy-efficient a property is.
EPC's are changing - why?
As the government continues to outline plans to reduce carbon emissions as part of its pledge to tackle climate change, energy consumption is a hot topic and this new EPC proposal is just one of the measures being introduced. If implemented correctly, both landlords and tenants should view it as a positive change, as it'll ensure rental accommodation is both cosy and efficient.
The Benefits of Upgrading to a C Rating
Attracting tenants - Climate change is a growing concern for much of the population and potential tenants are no different. Greater energy efficiency is a growing priority and will appeal, not only to the environmentally conscious but to an increasing majority, as people become more environmentally conscious. This goes beyond ethics too, as making your home energy efficient and more environmentally compliant will save you timely upgrades later on, essentially future proofing your home.
Save money - Homes with greater energy efficiency usually benefit from lower energy bills. This is not only great for tenants but also means landlords will benefit from a greater pool of potential tenants, as reduced bills will allow people to allocate more of their budget to rent.
Property Value - Properties with a better EPC rating tend to command a better rental price and also an increased market value.
How Landlords Can Improve EPC Rating
Insulate - Upgrading or installing wall and/or ceiling insulation can significantly enhance the energy efficiency of your property.
Switch appliances - Some kitchen appliances are more economically friendly than others, so switching them over can make a big difference. Replacing the boiler with a more environmentally friendly model may sound costly in the short term, but it's likely to pay dividends over the coming years.
Introduce Renewables - Introducing renewable energy sources into your property can have a major effect on its EPC rating, solar panels are well worth considering.
Conduct regular checks - Make sure you test your heating systems and check for maintenance as often as possible, especially in the winter months. Check heating is working as it should, and even consider the property ventilation system.
Get an EPC Assessment - The best way to improve your property's EPC rating is to get an EPC assessment, especially if you've not had one done recently. It'll break down your rating and give you actionable ways to improve, so you can implement the changes as quickly as possible.
Now's as good a time as any to embrace the change
The changes are coming, but instead of seeing them as a legal obligation, it's better to think of them as an opportunity to improve your property. The earlier landlords embrace the changes, the earlier they start to benefit from the improvements to their property. That's not to say all changes must be done at once, and knowing the changes aren't obligatory until 2030 gives you room to budget accordingly.
There are current schemes to help landlords with the changes, and suggestions of more to come in the summer of 2025. If you’d like more information on these changes, and the property and rental market more generally, be sure to keep in contact with us through these blogs, and contact our team if you have any questions.