Upcoming Changes To EPC Requirements For Rental Properties

While the changes to Energy Performance Certificate (EPC) requirements for rental properties won’t come until 2030, it is crucial that you are aware of the change as soon as possible.

Unless a valid exemption is registered, it has been illegal to let a domestic private rented property with an EPC rating of F or G since 1st April 2020.

Failing to comply with this could result in you getting a £5,000 penalty per property that fails to show an EPC of E or above.

This means if you have a rental property, or plan to rent a property, but you don’t know what the EPC band sits in, you should get it commissioned as soon as possible.

All privately rented properties will need to fall in EPC band C at a minimum by October 2030. This means if your rental property falls to the minimum standard of E or D, you only have 4 years to improve your rating.

There was discussion about bringing the deadline forward to 2028 for new lets, however this was later rejected.

In addition to this change, landlord spending on property improvements will be capped at £10,000 per property over 10 years. Any money spent on improvements after October 2025 will count towards this limit. As a landlord, if you hit the £10,000 cap for a property, you may receive an exemption to the minimum EPC ruling.

The Home Energy Model, a new EPC methodology, is also being developed. A description of this methodology is expected to be explained soon; however, dates are yet to be confirmed.

Properties that cannot reach the required rating can apply for an exemption to this rule; however, it will need to be registered formally.

For now, we recommend landlords begin planning improvements to avoid large costs later. There are grant funding schemes currently available which can help lighten cost of these improvements.

Waiting to improve your EPC rating means you risk higher costs, improving your home during a tradesman shortage and potential disruption to letting your property after 2030.

Our expert property management team are trained on all the latest legislation and any confirmed, upcoming changes to make being a landlord as stress-free as possible.

Register as a landlord today and let our property management team take the stress out of property management.