Upcoming EPC Regulations for Landlords

The Minimum Energy Efficiency Standards will alter as a result of the government’s newly proposed new EPC standards, which are expected to go into effect in 2025 and have an impact on residential rental property in England and Wales.

Currently, rental properties must meet minimum energy efficiency requirements (MEES) and have an Energy Performance Certificate with at least an E rating (EPC).

According to the new EPC requirements, your rental home would need to have a certification level of C or above as of 2025.

The modifications are being made to advance toward the government’s net-zero objectives by making dwellings more energy-efficient and reducing carbon waste.

Considering that dwellings in the UK are typically older than those in the rest of Europe, there is room for significant improvement in terms of energy efficiency.

With a focus on lowering the delivery of the statutory fuel poverty objective of EPC by a deadline of 2030, these modifications will improve the EPC of private sector houses, which helps to lower energy costs and boost comfort for renters since homes will be warmer.

However, these modifications will be implemented gradually starting with new leases in 2025 and then for all leases starting in 2028. They will be applicable to all domestic and private rental properties with lease terms ranging from 6 months to 99 years.

Failure to comply might result in fines of up to £30,000.

How will these new EPC regulations impact landlords?

A move from a minimum E grade to a C may cost landlords thousands of dollars.

The cost of insulating rental houses to retain heat or installing other “fabric first” measures that can enhance heating and lighting will be borne by the landlord.

According to the new EPC requirements, leasing agencies will need an updated and compliant EPC for the property they are promoting if you wish to rent out your house starting in 2025. If your property has a rating of C or lower, you will not be allowed to promote it.

The government announced revisions to the minimum energy efficiency criteria for England and Wales only following the consultation on December 30.

By 2025, all rental homes must have an EPC rating of “C” or above. New leases will be the first to be subject to the new rules, and all leases will be covered by them by 2028.