Having an Energy Performance Certificate has been a legal requirement since 2007. But for the buy to let market, the EPC dilemma is proving problematic.

The demands on rental properties
The UK government has proposed it wants all privately rented properties to have a minimum EPC rating of C or above by December 2028. For new rented properties, this rating should be achieved by December 2025. We know rental properties, currently, are only required to have a rating of E or above. For many buy to let landlords, the new minimum EPC rating is causing dilemma.

The cost of the right rating
New data suggests only one-third of privately rented homes have an energy efficiency rating of C or above. And we expect there will be exemptions remaining for certain types of property. But for the rest, the estimated costs to bring homes up to the required standard vary dramatically. We recommend landlords work to around £7,646 as this is a recommended average and generally accepted as the minimum. And buy to let landlords must beware that fines for non-compliance can go up to £30,000.

Energy efficient rental properties
The pressure to improve the energy efficiency of homes is growing amid the cost-of-living crisis, with energy bills due to increase by 54%. More energy-efficient homes will become increasingly attractive when renting or selling. There are many ways to improve your property’s energy efficiency. These include replacing halogen bulbs with LEDs, insulating the walls and roof space, and installing a more efficient boiler. Adding double or triple glazing will make the difference while installing a smart meter can help tenants keep track of their energy use. Going a step further, landlords could install solar panels or a ground-source heat pump.

The outlook for buy to let landlords
There is still uncertainty as to what the final rules will be, or even if the change will happen. However the fact still remains that sooner or later standards will need to improve.  The parliamentary bill has a second reading on 6th of May 2022, which is worth a look. It is also worth noting that The Association of Residential Letting Agents (ARLA), are calling for more financial support, to assist landlords in making these changes. We will be keeping an eye on any support which comes available. And if or when it does, we will be sure to tell all our landlords how they can apply for it.
If your property has a valid EPC rating, it can be found here – https://www.gov.uk/find-energy-certificate

Jameson and Partners provides a full range of rental services for landlords. We can also help you if you are considering a buy to let property. Contact our professional team to get the most out of your investment property today.