Energy Performance Certificates: What are the new requirements?

The countdown is on for landlords to bring their rental properties up to standard when it comes to EPC rating and energy efficiency. 

The new legalisation that is coming in play is that new tenancies must have an energy performance certificate (EPC) rating of at least Band C from 31st December 2025. Whilst for existing tenancies, this will apply from the 31st December 2028.

 The new rule isn’t ‘official’ just yet, the Bill is making its way through Parliament. However, it’s highly likely to be passed as the country strives to meet its emissions commitments and targets. With that in mind, many landlords are already taking matters into their own hands to get ahead of the game to avoid any hefty fines.

Time to take action

Depending on what band your property currently is, it may take a lot of work to improve your property and being a C rated property.

At the moment, all properties must have a rating of ‘E’ or above, if not than the property cannot be legally let.

The penalty for not having a valid EPC will also be raised from £5,000 to £30,000 from 2025.

What EPC improvements can you make?

  • Switch to LED lightening throughout the property
  • Installing cavity wall and loft insulation
  • Install a new energy efficient boiler
  • Replace old windows with double or triple glazing
  • Go with an energy supplier that provides you with a smart meter
  • Draught proofing windows and doors
  • Insulating pipes and tanks
  • Installing renewable energy sources such as solar panels and ground source heating to your property

How to fund the improvements?

Making the improvements can be quite expensive, depending on how much work needs to be done, it can take you into the thousands. Additionally, if you have more than one property, you’ll have to multiply that cost by how many properties that need work done.

As part of Amplo Group, our sister company Amplo Commercial Finance will be able to arrange short term funding to support you with your refurbishment needs. With access to a large panel of lenders, they’re confident that they will be able to find a funding solution to meet your requirements.

There are even some lenders who will be able to advise on what you need to do and even arranges EPC assessments and provide the certificate.

Inform your tenants before an energy assessment

Landlords and letting agents must give tenants at least 24 hours’ written notice before any property visits. As an energy performance assessment and EPC is a legal requirement, the majority of tenants will be more than happy to oblige – some may wish to be present when the assessor stops by.

The tenant must give their consent for any property visit unless is an emergency such as a fire, flood or gas leak.

How long does an EPC last?

Once your EPC has been issued, its valid for ten years. Once it expires, you won’t need to get a new one unless you are entering a new tenancy with new tenants or selling the property.

Additionally, once your EPC inspection has been completed, you will be provided with your new band rating and a recommendation report. The report will contain advice and improvements that will make your property more energy efficient.

How can landlords prepare for the current EPC requirements?

If you haven’t got an EPC yet, you’ll need to book your Energy Assessment as soon as you can. The inspection itself will only take around 30 – 40 minutes.

As a landlord, you have a legal responsibility to read through recommendations in your EPC report and ensure your property has the legally required eating.

If you have completed refurbishment work on your property, it may be best to get your inspection booked in and completed as soon as you can. The closer you live it to the 2025 deadline, the higher the demand shall be there. Therefore, you could be faced waiting a long for someone to come out and check your property.

Which properties are exempt from EPC requirements?

Some properties are exempt from the Minimum Energy Efficiency Standards. If your property is listed or protected and the improvements would unacceptably alter it, it is exempt from EPC requirements

Examples:

  • Temporary buildings (to be used for two years or less)
  • Places of worship
  • Some industrial sites or workshops
  • Detached buildings with a floor space of 50 metres or less
  • Buildings that are due to be demolished

If you would like a no-obligation discussion about funding options for EPC improvements or would like to discuss your mortgage needs, don’t hesitate to get in touch with a member of our team! Call us on 01270 443510 or complete our contact form, a member of our team will be in touch with you as soon as possible.