Energy Performance Certificates have been mostly insignificant in the market until recently. However, it is important to know that big changes are coming, and landlords should pay extra attention.

How will these changes impact you as a landlord?

At present, a rental property must have a minimum EPC rating of an E. However, the government is seeking to revise this to a minimum grade of C for all new tenancies beginning in 2025. It also intends to require a minimum C grade for all rental properties by 2028, even those with long-term renters.

What are the exceptions?

Although there are a couple of exemptions, these are few and far between. Listed buildings and those subject to restrictive covenants that could have their appearance altered by energy efficiency improvements, are clear exceptions.

Several temporary homes, and those that are occupied for less than four months a year, are also not included.

A £3,500 rental cost cap has been put in place for landlords who are unable to improve their property to the required EPC rating. This enables them to make as many changes as possible and then register their exemption as “all improvements completed.”

The targets may be lowered in the future, but energy will still play a big role in the rental market this year and in the future.

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