Until 20 September 2023, many landlords have been preparing their rental properties to meet a proposed new minimum energy performance certificate (EPC) rating of C and above from the end of 2025.
However, those plans have now been scrapped by Prime Minister Rishi Sunak as part of an easing back of eco and green policies along with a number of other measures such as delaying a ban on petrol and diesel cars and a delay to the ban on new fossil fuel boilers – e.g. gas.
While many people will be unhappy with the government rowing back many green schemes to achieve net zero by 2050, many landlords will no doubt be breathing a large sigh of relief.
What is the Current Requirement Now For Rentals?
With the scrapping of the minimum C rating for rental properties, it is important to remember there is still a minimum rating that needs to be achieved which has not changed, and that is properties must be at least an E or above. This still requires landlords to undertake improvements at their properties to reach a minimum E rating if the dwelling(s) are rated F or G.
Sunak also stated that the government would continue to offer subsidies to people who want to make their homes more efficient but would never force anyone to do so.
EPCs are Still Important and Required
EPC ratings when selling a home are essentially a guide to the property energy efficiency, although it remains a legal requirement to have a valid EPC certificate for the property when selling.
It is important to remember that many renters and buyers are seeking out more and more energy efficient homes as this usually means lower energy bills for the property. Studies show houses with a higher EPC rating have a better chance of selling compared to a low rated property.
There are also changes on the horizon to the way EPC ratings are calculated with some of the methodology and processes due to change in 2024. Once they are formally due to come into force, we’ll be doing a further article.