How Will The Proposed EPC Changes Impact Landlords?
Back in April 2018, the MEES regulations came into force and any property in the UK private rental sector now requires a minimum rating of Band E on an Energy Performance Certificate. It became unlawful for landlords to rent properties that didn’t have a minimum Band E rating unless there is an applicable exemption. Currently, a new bill is making its way through parliament to update these energy performance requirements.
If you’re a landlord and you’re unaware of the proposed upcoming legislative changes or you’re interested in buying a buy-to-let property and you’d like to find out more, below we have looked into how this new bill could impact the UK rental market.
What is an Energy Performance Certificate?
Simply put, an Energy Performance Certificate, commonly referred to as an EPC, summarises the energy efficiency of a building and each certificate is valid for 10 years.
An EPC contains information about the energy consumption of a property and provides cost-effective recommendations about how to improve energy efficiency. It also gives a property an overall energy efficiency rating too and EPC ratings vary from Band A, being the most efficient, to Band G, being the least efficient.
What are the proposed changes?
More pressure is being placed on people to improve their energy efficiency. The government is implementing various policies and proposals to decarbonise all sectors of the UK economy in an attempt to meet its net zero target by 2050.
The bill making its way through parliament proposes that all rental properties will need to have a minimum EPC rating of a Band C. It is proposed that this update to the existing MEES regulations will come into effect from the end of December 2025 for new tenancies and the end of December 2028 for existing tenancies.
What should landlords be doing now?
Although this bill hasn’t yet been passed by parliament, it is predicted that the government will be keen to implement this new legislation to improve the energy efficiency of properties. Should this change to regulations come into effect, landlords will be solely responsible for ensuring their rental properties have an EPC rating of Band C or above, unless they meet the criteria for an exemption, and many are already starting to make changes to their rental properties.
Ultimately, landlords will be unable to begin new tenancies from 2025 unless they make energy-efficient improvements to their rental properties and increase their EPC rating. This is concerning for both landlords and tenants, and there is a risk that a lot of properties will become ‘unrentable’ in the next few years if required changes are unaffordable. There will likely be an increase in landlords applying for bridging finance to help them cover the cost of any renovations required to make their property more energy-efficient.
It is advised that all landlords start looking at the recommendations about how to reduce energy use on their current Energy Performance Certificate. They can then start to implement some of the most straightforward and cost-effective improvements to their rental property, helping to ensure it will be rated Band C or above in 2025.
Getting some tailored mortgage advice
Whether you’d like to find out more about bridging finance or buy-to-let mortgages, feel free to contact our mortgage consultants at Mortgage Required. We have a brilliant team of mortgage advisors in the Twickenham area that can provide you with tailored advice on all aspects of the mortgage market. We have been assisting everyone from first-time buyers to landlords with huge portfolios of properties since 2001 and we pride ourselves on providing honest and sound advice, helping borrowers find the best mortgage deals. We can make the whole mortgage process much less stressful and we are here to help in any way we can.
Feel free to explore our website today to find out more about the mortgage products we can assist you with and don’t hesitate to book an appointment with a member of our team to discuss your mortgage requirements in more detail.
Recent posts
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
7 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
14 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease criteria for first-time buyers
17 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
Ways to save money over the summer holiday
23 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
More information
Trusted by
