Proposed Energy Reforms (EPC)

Tue 11 February 2025

Proposed Energy Reforms (EPC)

The Labour Government has announced plans to raise the minimum Energy Performance Certificate (EPC) rating for rental properties from E to C by 2030. This initiative aims to enhance energy efficiency across the private rented sector and contribute to the Government’s Net Zero goal.

What is an EPC?
An Energy Performance Certificate (EPC) is a home energy report, introduced to the industry in October 2008, which shows how energy efficient a property is. The reports, which are produced by qualified Domestic Energy Assessors, shows an energy rating on a scale between A and  G, with A being the most energy efficient and G being the least. The rating depends on many factors including  the age and construction of the building, type of windows, how well insulated the property is and the services it benefits from (form of heating, such as gas or oil, lighting and hot water). An EPC is valid for 10 years and will give an indication to the homeowner and/or tenant as to the potential running cost of the property.

Under the current Minimum Energy Efficiency Standards (MEES) Regulations, which came into force in 2018, rental properties require an EPC with a minimum rating of an E. Where properties do not meet the minimum standard, this legislation requires landlords to spend up to £3,500 making energy improvements to their rental properties which may include upgrading the central heating system, increasing loft insulation or replacing windows. 

Key Points on Reforms for Landlords:

• EPC Rating Requirement: By 2030, all rental properties in England must achieve a minimum EPC rating of C with a cost cap of £15,000 for landlords to spend on each property.
• EPC metrics: The method for assessing and calculating EPC ratings is to be reviewed and likely expanded.
• Government Support: The Government claims that the average costs to landlords to comply with the new proposals will be in excess of £6,000 per property. Financial assistance to help landlords with these upgrades, alongside the Boiler Upgrade Scheme and Warm Homes: Local Grant, is being considered and it is expected these will be outlined as the consultation progresses.
• Listed buildings: All listed buildings will require an EPC although there will continue to be relevant exemptions under the MEES regulations.
• Houses in Multiple Occupation (HMO): All HMO properties will require an EPC and will need to comply with MEES.
• EPC validity periods and expired EPCs: EPCs are currently valid for 10 years and it is proposed that any new EPCs would have a reduced validity period. There will also be a mandatory requirement to renew the existing EPC on expiry.

The consultation will run until the end of February 2025 and there are various elements outlined to be considered. The aim is to make EPCs more helpful with easy to understand information about a building and how to improve its energy efficiency to reduce carbon emissions and fuel costs.

Let us help you

RH & RW Clutton’s Lettings Department is committed to helping landlords comply with their ever- increasing obligations in the private rented sector.

We can help you proactively plan for these changes; assess your properties and existing EPCs, advise on the most relevant improvement measures and identify any grant funding which you may be entitled to.  This will ensure compliance with future regulations and enhance the appeal and value of your rental investments.

Contact Sam Benson MARLA in RH & RW Clutton's Estate Agency office in East Grinstead to discuss your requirements.

This article is intended as a guide only and does not constitute legal advice. This article has been superceded - update here.

#epcregulations #mees #epc #netzero #energyimprovements #labour #tenant #warmhomesplan #landlords

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