Currently legislation introduced in 2015 which established the Minimum Energy Efficiency Standards for residential properties requires rental properties to have an EPC Rating of E or above. From 1st April 2025, under current proposals, all newly rented properties will be required to have an EPC Rating of C or above. Exiting tenancies will have until 2028 to comply with the new rule change.
As Britain has some of the oldest housing stock in Europe, a substantial number of properties are currently let out as D rating or below, this would mean that without the improvements being made, a large number of landlords across the country may find that in 2025 their properties become “unrentable”.
It is suggested that the department for Business, Energy & Industrial Strategy (BEIS) is working to review the current assessment system in order to take into consideration new technologies such as heat pumps, renewables and smart control devices.
Our advice to Landlords wishing to continue to rent out their properties would be to start to consider now what would be needed to increase their ratings to a C and to start those works as soon as possible. Improvements will only add value to the property and as the cost of living continues to rise tenants are much more concerned about the cost of utilities making the EPC rating more important when considering a new tenancy. These changes, eventually, will benefit both the landlord and the tenant and of course only have a positive impact on the environment.
It is possible that in the longer term as all rental properties start to meet the new requirements we could see the average bills of a tenant being lower than those of the average home owner.
If we can advise you on letting out your property, please contact our team who will be happy to help.
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