To tackle climate change, the government is planning to ensure that all rental properties have an Energy Performance Certificate (EPC) rating of ‘C’ by the end of December 2025. Ratings usually range from A (most efficient) to G (least efficient). However, for property to be classified as ‘energy efficient,’ an average rating of ‘C’ is required.
Before marketing property owners must therefore have a valid EPC, the validity of which lasts for a period of 10 years. EPCs are important because it will inform tenants about the overall cost of heating and light in the property and play a key role in reducing greenhouse emissions.
How will EPC ‘C’ energy impact property owners?
The plan to make homes greener has been a cause for concern for many property owners. Making changes to properties to meet the ‘C-energy rating’ requirements is expensive. This is because property owners may be required to replace gas boilers, doors, and windows, install energy efficient lighting, and carry out improvements to insulation. Failure to do so would lead to proposed fines of up to £30,000.
It is currently unclear whether the government would provide financial aid to property owners to meet its green requirements. Although the Green Homes Grant was previously introduced at the start of the pandemic, it proved to be unsuccessful. Alternative solutions include borrowing from mortgage lenders who have launched green products to encourage property owners to invest in upgrading their properties.
Despite the challenges property owners may face when upgrading properties, making the move to greener properties brings many benefits. Upgrading property could increase its value and attract homebuyers as they would be able to save more on energy consumption. It could also lead to a reduction in rent arrears; a greener home is a warmer, higher quality home and would therefore likely increase tenant satisfaction.
Watch our greener homes video here: Greener homes: What is EPC ‘C’ energy and how will it impact property owners? – YouTube
T +44 (0)203 488 1488