Attention All Landlords: The “C” Rating for EPCs Has Been Scrapped – But Don’t Take Your Foot Off the Pedal
As we publish this article, the latest COP meeting is in the news, and the facts are stark: The world’s natural resources are finite. There is no Planet B.
Undoubtedly, in our daily lives, we’re all trying to be a bit greener in some way, shape or form.
For landlords, then, it’s perhaps a little surprising that the government has, for now, abandoned its plans to set a minimum Energy Performance Certificate (EPC) “C” rating for rented properties in England and Wales by 2025 for new tenancies, and 2028 for existing ones.
Why? Mainly because it’s still committed to achieving net zero by 2050, which many consider a tall order. However, the reasons for cancelling the new legislation appear sound:
For energy efficiency upgrades, there are, or were steep cost implications for property owners trying to meet the targets within a relatively short deadline (2025). Plus, with rising mortgage costs, it may not have been a resounding vote winner.
What Are The Ratings About?
It’s helpful to know how energy performance is measured. The yardstick, if you like.
For example, a “C” rating means that a property has between 69 and 80 points on something called the Standard Assessment Procedure, or SAP. This is a government-set measure used by local energy assessors to judge a property’s energy efficiency. Various elements are analysed including carbon emissions, double glazing, boiler performance, wall insulation, etc.
A is the highest, and G is the lowest.
Energy Uncertainty
To re-cap slightly, as of 2025, all rental properties (with some exceptions, including period properties) would have needed an EPC rating of “C” or higher, with eye-wateringly expensive fines for not complying; as much as £30,000.
This regulation was quietly overturned in September, and the National Residential Landlords Association was not best pleased. It stated that the government’s U-turn had caused further uncertainty for landlords. Also, their hesitation around this issue has been “damaging to the supply of rental properties”.
This article, therefore, takes you through where we are with EPCs, and what you may need to think about as early as next year. Plus, how we can help you stay on track.
What You Need to Know Now
Despite the new thresholds being put on ice for now, it appears that to comply with the rules, many landlords were already ahead of the game.
A study by property trade magazine Shawbrook Bank shows that 80% of landlords were prepared for the 2025 deadline. Also, 30% already had properties with an EPC rating of A-C, while 50% said they had plans to improve their properties by 2025.
Has money been spent that wasn’t necessary? Well, no.
Upgrading Your EPC Ratings
Is it still worth improving the energy efficiency of your rental properties?
In a word, yes. Two key reasons:
1. We’re due for a general election no later than 28th January 2025, and with a possible change of government, the new EPC rules may well be back on the table and
2. Enhancing your properties’ energy efficiency will make them more attractive to potential tenants. Bills may come down sooner or later, but they’re still ultra-high. So, the longstanding tenants you’re after will almost certainly be looking for homes that are less expensive to heat.
If you’re a landlord already renting your property through Brighton Homes, we will provide a full inspection survey as part of your engagement with us. We will do this for a nominal charge for property owners not currently with us.
For both instances, we’d be pleased to proceed with the improvement works on your behalf.
Our recommendations? Whether or not the new EPC rules become law, energy-efficient homes are the way forward. Arrange for a survey with us, obtain quotes for the works, and then the improvements can be done in stages. It makes sense from a commercial and environmental point of view.
Equally, as a considerate, mindful landlord.
Some Energy Efficiency Measures You Can Take
All of these are infinitely do-able:
· Cavity and Wall Insulation. Without decent insulation, you may as well imagine £10 notes floating out through the roof of the property. Most heat is lost through a lack of insulation, so keeping it where it needs to be could be your number one project. Try googling “insulation grants” for some information on how this could be more affordable than you may think.
· Double Glazing. This will make an immediate and tangible difference to the warmth of your tenants’ homes. And, to their gas bills. Rattling windows in the dead of winter are a nightmare; they let in drafts, make a terrible noise, and are best avoided at all costs!
· Insulated Curtains and Blinds. Worth the investment. When it comes to keeping the heat in, they’re a winner.
· Arrange for a Smart Meter to be Installed. No more tiresome estimated bills and forgetting to read the meter. Smart meters are quick and easy to fit. Plus, they’re free to install from an energy supplier. Even better, they’ll enable your tenants to recognise the power-hungry appliances they’re using – such as an iron or an electric fire.
So, Not to put too fine a point on it, remaining an accountable, legally compliant landlord is no longer the relatively straightforward path it used to be. Rules and regulations tighten and become more challenging. And then, sometimes they change. Or, after a big, loud fanfare they don’t happen at all.
It can all get confusing, and making a mistake is easy. Hence, it’s worth engaging a professional agency such as Brighton Homes to keep you up to speed and enable you to get on with your busy day stress-free.
The nights are seriously drawing in at the time of writing, and we’re going into a cold snap. Doing your bit for the planet and the people in your property makes you a great landlord with some excellent green credentials.
Get in touch with Brighton Homes for more information on making your rental property more energy efficient.