Will your buy to let property become illegal? A touch new legislation is due to hit property investors in 2025. In this video I talk about the opportunity this brings for those investing in property today. Plus what you need to do to make sure you are compliant.
So what is happening? Will you be affected? Can you do anything about it?Â
This has all to do with EPC.Â
What is an EPC?
Energy Performance Certificates, or EPCs, are reports that evaluate a building’s energy efficiency. The assessment takes into account factors like the property’s insulation level and will estimate how big your future utility costs might be. To help you save money, it also suggests improvements.
Energy Efficiency Certificates are graded on a scale of “A” to “G,” with “A” being the most energy efficient and “G” being the least. The certification will list the current rating and the letter category it belongs to. The EPC’s ability to display possible ratings is by far its strongest feature.
This indicates that the study evaluates the potential energy efficiency of the building if the EPC’s suggested adjustments were implemented. Lower energy bills are probably to be expected the more energy-efficient a property is.
A report with a high energy efficiency rating is likely to have double-glazed windows, good insulation, and a covered boiler, among other features.
EPCs for Landlords
Since a change made last year, landlords are now required to obtain an updated EPC before renting out a home or beginning a new rental. After ten years, EPCs expire and must be replaced. There are currently MEESs (minimum energy efficiency standards) to consider. A rental property cannot have a rating lower than “E.” Our post on EPCS for landlords has more information.
BUT, here’s the catch, a new proposal states that from a E rating, the bar is going to be raised into a C. This is applied to all new tenancies from the end of 2025 and existing tenancies to 2028.
Yes, in terms energy saving it sounds great however it is estimated that only 1/3 of the rental homes currently meet this C rating standard. This just means that 3.2 million rental homes need to fix the standard into a C in the span of 3 years.
How can I learn what the EPC rating is?
A property’s EPC is usually included with the listing as one of the photographs if you’re trying to purchase it. This is a colorful artwork with a variety of colors and letters, from A to G, as you can see. EPCs only last for ten years, so check to see if the one associated with the property listing is up to date.
If the EPC isn’t attached or you believe it to be an outdated one, you can speak with the seller or estate agent directly, or more conveniently, you can search by address in the EPC register.
What should I do If my rental property has an EPC that is lower than an C rating?
If your previous EPC rating was lower than a C, have a current EPC done right away. With OpenRent, you can request a thorough EPC report.
Since EPC calculations are always evolving, it’s possible that you’ll get a different rating than you did a few years ago. Before renting out the home or renewing your lease, you must perform efficiency upgrades to raise the property’s rating if it is still below an E.
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