If you’re a landlord, you may have heard about some forthcoming changes regarding EPC ratings which could result in you having to carry out some work on your properties. Here’s what you need to know…

If you’re currently renting out a property in the UK, it must have an EPC (Energy Performance Certificate) rating of E. This applies to all tenancies, not just new ones.

An Energy Performance Certificate provides detailed information about a property’s energy efficiency. To obtain an EPC rating for your property, you need to have an Energy Assessment Survey carried out. The assessor will look at your windows, roof, walls, and insulation, as well as your boiler, heating, and lighting. They will also look at when the property was built. If you own an older property, you may find it harder to achieve a good energy rating and may need to spend money getting work done.

Ratings can range from A, which is the most efficient, to G, which is the least. It is a legal requirement to have an EPC rating. If you are unable to obtain an E rating at present, you will need to have improvements carried out on your property such as insulation of walls.

EPC ratings changing

Although the current requirement is to have an EPC rating of E, there is a change on the horizon.

From 2025, all rental homes in England and Wales with new tenancies must have a rating of at least C. For existing tenancies, landlords will have until December 2028 to comply. This forthcoming change is part of the government’s objective to increase energy efficiency.

We recommend you plan ahead and don’t get caught out by substantial costs at the last minute. Achieving an energy rating of C is clearly going to be harder than securing an E rating. If you’re currently unaware of any work needed on your property to achieve this rating, you could risk a loss of income until the work is completed.

Create a budget

If you’re a landlord with more than one property, it could be expensive to achieve a C rating for your entire portfolio. Speak to an assessor now to find out what work needs to be done so that you can create a budget and have some time to plan ahead.

It’s always best to be financially prepared and help is at hand. For instance, it might be possible for you to raise funds for any work required by remortgaging. Talk to us about your options.

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