As a conveyancer, I strive to stay informed about significant regulatory changes that could impact property transactions. One such area is the evolving landscape of Energy Performance Certificate (EPC) requirements for rental properties in England and Wales. While I don’t provide direct compliance advice to landlords, understanding these changes is crucial for anyone involved in buying, selling, or owning rental properties.

Current EPC requirements

As of now, rental properties in England and Wales must have a minimum EPC rating of E to be legally let. This standard has been in place since April 2020 and applies to all tenancies.

Proposed changes: A shift to EPC Rating C by 2030

The UK government has proposed raising the minimum energy efficiency standard for privately rented homes to the equivalent of EPC rating C by 2030. This proposal aims to improve the energy efficiency of rental properties as part of the broader goal to achieve net-zero carbon emissions by 2050.

Initially, there were plans to implement this change in phases – by 2025 for new tenancies and by 2028 for all existing tenancies. However, these timelines have been extended, and the current proposal sets a single deadline of 2030 for all rental properties to meet the EPC C standard.

Implications for Landlords

While the proposed changes are still under consultation, landlords should be aware of the potential implications:

• Property Upgrades: Achieving an EPC rating of C may require significant improvements, such as enhanced insulation, energy-efficient heating systems, or double-glazed windows.​
• Financial Considerations: Upgrades to meet the new standards could involve substantial costs. The government has previously suggested a cost cap of £10,000 per property, but details are subject to change pending the outcome of the consultation. ​
• Marketability and Tenant Demand: Properties with higher EPC ratings are likely to be more attractive to tenants, especially as energy efficiency becomes a more prominent concern.​
• Compliance and Penalties: Once the new standards are in effect, non-compliance could result in penalties, including fines and restrictions on letting properties that don’t meet the required EPC rating.​

What should Landlords do now?

Given the proposed changes, landlords may consider the following steps:

• Property Upgrades: Achieving an EPC rating of C may require significant improvements, such as enhanced insulation, energy-efficient heating systems, or double-glazed windows.
• Plan for Upgrades: Begin budgeting and planning for potential energy efficiency upgrades to meet the proposed EPC C standard by 2030.​
• Stay Informed: Keep abreast of developments regarding the EPC regulations and participate in consultations where appropriate.

Conclusion

While the proposed changes to EPC requirements are still under consultation, they represent a significant shift in the regulatory landscape for rental properties. As a conveyancer, I recognise the importance of these developments and their potential impact on property transactions. If you’re considering buying or selling a rental property, understanding the current and proposed EPC requirements is essential.

How we can help

At TV Edwards, we are committed to keeping our clients informed about key regulatory changes that may affect their property decisions. If you have questions about how these proposed EPC changes might influence your property transactions, please feel free to contact our highly experience team on property@tvedwards.com or call us on 0203 440 8000.