Changes in EPC Regulations – what to expect

EPC’s are essential in both the letting and residential sale of property – and the laws surrounding this are set to change.

You may have come across the term ‘EPC’, referring to an Energy Performance Certificate of a specific dwelling.  This gives information about a property’s energy efficiency and carbon dioxide emissions, rated bands A-G, with A being the most energy efficient.

Currently, all landlords must comply with The Domestic Minimum Energy Efficiency Standard (MEES) Regulations, first set out in 2018.  This states that landlords cannot let domestic properties on new tenancies at a band F or G.  In 2020, this was extended to all property (even if there has been no change in tenancy), unless there is a valid exemption in place.  If a property is below an E rating, landlords should take action to improve this up to the current cost cap of £3,500.   If work up to this level has been carried out and it is still not above the required EPC E or above, exemptions may be sought.  Failure to comply with the MEES Regulations risks enforcement from local authorities, including penalties of up to £5,000.

With the recent change in government, sights are now set on developing the regulations further in an effort to reduce household energy bills and decrease the 6.5 million households in fuel poverty.  As part of the ‘Warm Homes Plan’ the government are planning to increase the minimum EPC level to C by 2030.  Currently, it is estimated that 48% of privately rented homes meet a band C, representing the true scale of investment needed to reach the required levels.  Whilst we are waiting on further clarification from the government, it is expected that the cost cap will also increase to encourage a lower level of exemptions.  Private rented sector organisation, Propertymark, are calling for additional support for landlords, claiming the current subsidies do not offer enough.

If you would like to discuss how the changes in EPC regulations may affect you, or for general advice on your rental property give us a call on 01995 603180 or email lettings@abarnett.co.uk. 

Jenny Rheade
Lettings Coordinator
Office Number: 01995 603180
Office address: Market Place, Garstang, Lancashire, PR3 1ZA

Source: House of Commons Library 2024, PayProp 2024, UK Government 2024