Are You Ready For Proposed Changes To The Energy Performance Certificate Legislation?
The upcoming EPC rating changes: What you need to know
The UK government is introducing stricter energy efficiency standards for rental properties, aiming to reduce carbon emissions and improve the sustainability of housing. Under the proposed new regulations, landlords will be required to ensure that their properties achieve at least an Energy Performance Certificate (EPC) rating of C by 2030. Currently, the minimum required rating is E.
This significant change poses both challenges and opportunities for landlords. The goal is to make homes more energy-efficient, but the financial and logistical impact on landlords could be substantial. See below on how these changes might affect you and what steps you can take to manage the transition smoothly.
How will you be affected?
The new EPC regulations mean that landlords with properties rated D or below will need to make improvements to raise their energy efficiency. Non-compliance could result in substantial fines, potentially reaching £30,000. This requirement covers all privately rented homes, including buy-to-let properties, and may necessitate upgrades like better insulation, modern heating systems, or double glazing. The challenge for landlords is that these upgrades come with upfront costs. Many landlords, particularly those with older properties, may face significant renovation expenses. Additionally, obtaining funding and balancing cash flow could become tricky, especially as material costs rise.
Steps you can take now
To reduce the financial and logistical strain, you should begin preparing for these changes as soon as possible. Here are some actions you can take to get ahead:
Conduct an EPC assessment: Find out the current rating of your property and identify the areas that need improvement. This will give you a clear picture of where to focus your efforts.
Invest in insulation: One of the most effective ways to boost your property's energy efficiency is through insulation. Cavity wall insulation, loft insulation, and energy-efficient windows can all help to retain heat and reduce energy consumption.
Upgrade heating systems: Old, inefficient boilers are a major source of energy waste. By replacing your boiler with a modern, energy-efficient model, you can significantly improve your property's EPC rating.
Explore renewable energy solutions: Consider integrating renewable energy sources, like solar panels, into your property. These can have a substantial impact on your EPC score and also reduce your property's carbon footprint in the long term.
Plan for future costs: Start budgeting now for the potential costs of these upgrades. By spreading out the work over time, you can avoid a large financial hit closer to the deadline.
Whilst the current EPC reports give you a general guide on how you can improve the energy efficiency of your property, they are not overly specific and take a broad brush approach in improvements that can be made. Oxon Portfolio Management have close links with a company in Oxford who carry out a more in depth study and will propose the most cost effective methods of obtaining that C rating. Although this approach is more expensive than a standard EPC, identifying and the most cost effective works, will save you money in the long run.
We have a number of exisiting clients who are already preparing for this change by having a more in-depth survey carried out, our advice is not to leave it too late and at least begin preparing for the change, knowing which areas require improvement and the likely cost(s).
Should you wish to discuss further and see how Oxon Portfolio Management can help you and your rental property please do not hesitate to get in touch.