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
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
UK 2024 Autumn Budget: Housing
18 days ago
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
Talking about money with kids
25 days ago
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
Labour Autumn Budget Predictions: Housing
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
How can I look after my mental health?
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!
First Time Buyer to do List
4 Oct 2024
Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started.
Bank of England Holds Base Rate at 5%
20 Sep 2024
With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.
More information
Trusted by
