Ladybird Living – Your London Estate Agent

Ladybird Living
Jan 16 2023

Private rented sector- changing EPC rules

An Energy Performance Certificate (EPC) rating of C or above will be a requirement for all newly-rented properties by 2025. From 2025 until 2028, property owners will be expected to ensure that existing tenancies also reach an EPC rating of ‘C’. It is not only the private rented sector that must achieve an EPC rating of ‘C,’ but the government also expects that all properties across England and Wales reach a ‘C’ rating?by 2035. 


Currently, the average rating for a private rental home is a “D” rating in England and Wales and?it is estimated that 15% of property owners are still not up-to-date with the changing EPC rules.  


How costly could the necessary energy efficiency upgrades be? 

In the long-term, properties that have an energy efficiency rating of ‘C’ will save money and reduce huge energy bills. It is estimated that households and businesses are losing £3 billion in savings annually due to not making energy improvements to properties. 


To make energy improvements to properties, property owners will need to spend at least £4,700 to upgrade a property. Some of the ways in which property can be made more energy efficient include switching to double glazing and fitting low-energy lightbulbs. 


How much will the government expect property owners to pay out? 

A price cap of £10,000 has been proposed by the government for property owners who need to get their properties up to a “C” rating. Property owners can then apply for an exemption to their rating.  


How difficult will it be to upgrade properties? 

It is predicted that 40% of properties in the private sector will be unable to meet the EPC ‘C’ rating requirement by 2028. Older properties will be affected the most as it may be more challenging to make them more energy efficient. New build properties may already meet the EPC requirements or would require few changes.  


How can property owners fund the improvements? 

One way in which property owners can fund the improvements is to charge tenants a small percentage of the cost towards the EPC upgrades.  


Schemes, loans, and grants are also available to help fund EPC upgrades. Examples of this include the Boiler Upgrade Scheme, VAT relief on energy saving materials and Green Deal loans. 


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