12^th April 2022

Energy Performance Certificate changes on the horizon

In an attempt to improve the general state of rental property across the UK, the government introduced Minimum Energy Efficiency Standards (MEES) Regulations in 2018. The regulations were brought in not only to make rented properties more habitable, but also to increase the energy efficiency of those buildings that performed the worst. The law states that any property – whether for sale or rent – must have a valid Energy Performance Certificate (EPC), which will benchmark the building and provide recommendations for improvement.

Currently, every rental home must return a minimum EPC rating of E, but it’s the government’s aim to raise the bar and have as many homes scoring a C by 2035. Having published this target, the government is now consulting on the viability of achieving a minimum C rating for all existing rented properties by 2028. In addition, the government is keen to ensure that all newly rented property hits the minimum C rating by the beginning of 2025. When the 2025 deadline comes into effect, it’s also possible that the fine for not having a valid EPC may increase from £5,000 to £30,000.

The majority of landlords will be supportive of the change, although it may present challenges in a number of areas. Period properties and Victorian terraces, for example, tend to be less energy efficient than newer homes, and simply upgrading the boiler or installing double glazing may not hugely impact the EPC rating. Introducing insulation in the roof and the walls will generate an improvement, as will switching to low energy lighting and insulating the hot water cylinder. And the government’s ban on gas and oil boilers in new build properties from 2025 will most likely see a switch towards alternative low-carbon heating solutions such as heat pumps.

What is an EPC?
Any property that’s being built, sold or rented must have an EPC, and this must be made available to any potential purchasers or tenants. An EPC lasts for ten years and the proposed changes are a central strand of the net zero targets published in the Build Back Greener strategy for decarbonising all sectors of the UK economy by 2050.

For Andrew Ward, owner of Award Property Management, the stricter targets on energy efficiency can only be a positive move forward. ‘Given that nearly one quarter of the entire carbon emissions generated in the UK come from our homes, the changes to EPC regulations are welcome,’ comments Andrew. ‘Approximately 67% of rented homes across the country – numbering around 3.2 million – score an EPC rating of D or below, so there’s a lot of work to be done. As letting agents in Cambridge, we’re working very hard with our landlord clients to ensure they comply with all current regulations, and we’ll be liaising to assist them in achieving a minimum C EPC rating ahead of the deadline. As well as making sure that the landlords are meeting their obligations, this will also provide peace of mind to the tenants as they’ll know that the home they‘re renting meets the government’s energy efficiency guidelines.’

Award Property Management are letting agents in Cambridge. If you’re looking to rent your property, please get in touch. We’d be happy to help and advise.