BTL EPC Regulation Changes

The Energy Performance Certification was introduced in 2007, rating a property’s energy efficiency. By law, all domestic and commercial buildings available to buy or rent in the UK must have one.

The scale ranges from an ‘A’ rating being the most energy-efficient, with a ‘G’ rating being the least energy efficient. Each certificate lasts for 10 years.

What do the new changes entail?

Currently, domestic private rental properties must meet a minimum level of energy efficiency which is an EPC rating of E.

However, beginning 2025, all newly rented properties will be required to have a certification rating of C or above. Existing tenancies will have until 2028 to comply. These changes will ensure energy-efficient homes and assist in meeting the government’s net-carbon zero targets.

Who does this impact?

For landlords, unless they want to risk a fine for non-compliance or not be able to rent at all, they will be forced to improve their rating.

For properties which may have to make the jump from an E rating to a C or higher, such home improvements could be a steep investment. A few ways to improve a rating include insulating walls and the roof, upgrading the heating system to something more energy-efficient, and double or triple glazing windows to prevent draft.

On the other hand, tenants stand to benefit. A better EPC rating could contribute to lowering energy bills, increasing comfort at home, and reducing overall carbon footprint. Raising the minimum EPC rating to C or above will also help fight fuel poverty and contribute towards raising the standard of living across the UK.

How Can We Help Here at Capital Mortgage?

As you will have seen from recent blogs and social media activity, we are looking to take the lead with all clients new and current on the topic of climate change and how that impacts the property industry. We are available to go over a wide range of options you as landlords have available to start considering to how and when to make improvements if necessary. While the changes are still a few years away you may look to start putting future plans in place.

This article is not intended to be and cannot be relied upon being advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us directly to discuss your personal circumstances.

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