Upcoming Regulation Changes

Upcoming Energy Performance Certificate (EPC) Regulation Changes 

Landlords have a long list of regulations to keep up to speed with and with recent change in the UK government, it has become even harder to stay up to date. Changes to Energy Performance Certificate (EPC) legislation has been in the pipeline for some time with original plans that would have come into force in 2025.

The proposals would have required landlords to ensure their rental properties had a minimum EPC rating of C by 2025. Fortunately for any landlords of properties requiring energy performance improvements, the deadline for this has been pushed back to 2030.

What are the current EPC requirements?

As it stands, rental properties must meet the minimum EPC rating of E. This requirement has been in force since 1 April 2020 and was introduced under the Minimum Energy Efficiency Standards (2018) regulations. 

Landlords with properties that are lower than rating E must make the necessary improvements to meet the required rating of E. However, the cost of improvements is currently capped at £3,500. If a landlord spends this amount and the property still does not meet rating E, they can apply for an “all improvements made” exemption.

What changes are planned for EPC regulations?

In September 2024, the government announced that private rental properties must meet the minimum EPC rating of C by 2030. It is estimated that this impacts around 52% of private landlords who will need to make the necessary improvements before the planned deadline. The cap for improvements is also expected to be increased to £10,000, which could give provide financial challenges for some landlords who need to ensure they meet the new requirements.

How to prepare for the upcoming EPC changes

If you’re a landlord who is worried about how the upcoming changes could impact you, the best approach is to get ahead. If your property is already a rating of C or above, you probably won’t have anything to worry about unless your next rating drops below C. 

With EPC ratings lasting 10 years, if your last EPC was more than a couple of years ago, there may be issues that you will need to attend to. When you or your letting agent conduct inspections, you can review the property for any obvious indications that the property might require energy performance improvements. For example, if there is an old boiler that is no longer working very efficiently, it could be a good time to upgrade to a new, more energy efficient one. If you provide appliances in the property, when they require replacement, look to replace with appliances that have the higher energy ratings.

Review the list of recommendations on your last EPC and if there are any actions that you have not taken yet, you should look at implementing some of the more important ones.

One of the most effective ways to improve energy efficiency is to upgrade the insulation in the loft and walls. Insulation improvements can also be completed on a fairly low budget with fibreglass insulation being the cheapest way to insulate a loft, which can be done without the cost of a tradesperson, if preferred.

Adding thermostatic radiator vales is another budget-friendly way to improve energy efficiency, and swapping all bulbs for LED bulbs can improve the rating too.

Grants and funding

Landlords may be eligible to apply for certain types of funding or grants to cover the costs of making energy efficiency improvements.

One option to explore is the Energy Company Obligation scheme, which includes grants for improvements such as heating upgrades, insulation and smart thermostats. However, the eligibility criteria requires tenants to receive certain benefits or have a low income.

Additionally, the Warm Homes: Local Grant scheme is another possible way to secure funding for energy efficiency improvements. Again, this is aimed at making improvements on properties where tenants are on a low income (gross household income of less than £36,000) but for those eligible, funding of up to £15,000 could be approved.

Somerset landlords may also be eligible for various types of funding from Somerset Council, which you can find more details about on the somerset.gov.uk website.

Next steps in preparing for EPC changes

There is plenty of time for landlords to start getting prepared for the upcoming changes to avoid unexpected energy improvement costs when the changes come into effect. 

Properties that have higher energy efficiency ratings are more attractive to tenants who can save money on their energy bills, so there can be advantages for landlords too. Review funding options, start making some of the energy efficiency improvements we’ve covered, and you should be well-prepared for the upcoming EPC changes in 2030.