Since April 2020, the Minimum Energy Efficiency Standards (MEES) have applied to all tenancies, requiring a valid EPC rating of at least E. As the government look to introduce changes yet again, it can seem like a daunting prospect to have to make even further improvements to your property. However, many landlords needn’t worry as much as they first think and we’re going to show you why.

 

What’s The Latest on EPC Regulations?

In order to further reduce carbon emissions and help the country to reach net zero, the government have put forward a new Minimum Energy Performance of Buildings Bill that will yet again raise the EPC standards for rental properties.

The government have now proposed that all rental properties in the UK will require a minimum rating of at least C by 2025. This will apply to all new tenancies, whilst existing tenancies will have until 2028.

It is also proposed that the penalty for failing to meet the requirements will be raised from £5,000 to £30,000.

Whilst this sounds scary and like something that could shake up your entire portfolio, it really doesn’t have to be, and here’s why.

 

Don’t Let EPC Changes Worry You

It’s easy to start to worry about these changes as they could require extensive upgrades and financial investment to your property, however there are several reasons why you shouldn’t let it scare you.

Firstly, in the vast number of cases, the financial cost shouldn’t come as a major issue. This is largely due to many properties already having a C rating or above, or are relatively close to achieving it. What’s more is that there’s currently a limit of £3,500 set on the improvements that need to be made, meaning you won’t have to spend above this amount.

The move towards higher efficiency ratings could also be financially beneficial in the long run if you’re able to get ahead of the game. Not only could you benefit from Green Mortgages – where your property could qualify for a lower interest or higher amount loan – but you would benefit from increased demand for your property and the ability to charge higher rents. This is due to many tenants seeking environmentally friendly homes where bills would be cheaper.

Finally, these requirements only kick in from 2025 for new tenancies and 2028 for existing ones. This gives you 3 to 6 years yet before you must make the final improvements, giving you a great opportunity to get ahead of the problem and spread out your improvements, further lowering the financial impact that it could have.

  

Get In Touch With Us

We’d like to encourage you to get in touch with us so that we can discuss this issue with you further, and help you to come up with a plan that’s financially effective and achievable.

If you have any questions or would like to discuss the EPC implications for your specific properties, please reach out to us using the button below!