As we all know, the government are highly focused on net zero by 2050, and this will mean that the way properties are reviewed for energy efficiency will change. Landlords will need to ensure that any property they wish to rent meets the minimum EPC rating of C, rather than the current minimum rating of C.
The Facts
Up until now, the cost of energy use has been the primary factor used to determine the EPC grade. However, that is about to change soon to a more comprehensive approach that emphasises the following:
- Building fabric and insulation
- Energy usage and efficiency
- Carbon emissions
- Smart readiness
This means that your home’s energy performance will be evaluated based on its ability to stabilise the UK’s national grid, not merely on the use of double glazing or bills. This means that from 2028, new tenants must have an EPC of C or higher, and current tenancies must conform by 2030. You will need to take action if your property is currently graded D or lower.
Smart Energy
The emphasis on smart energy use is key here. In the UK, energy use peaks between 4 and 7 p.m., and the government hopes to get landlords to contribute to the distribution of energy demand, meaning:
- Setting up thermostats and smart meters
- Possibly storing off-peak energy using household batteries
- In situations when heat pumps are not practical, taking into account electric heating options
Even if these improvements have no effect on your insulation, they will still impact your EPC rating.
Should I Upgrade Now?
This doesn’t necessarily mean you need to rush and upgrade now. The government is still outlining this new EPC system, and although it appears likely, details could change or further regulations could be added, potentially resulting in additional costs. In the meantime, examine government updates.
In Conclusion
This will mean a significant change in the way rental properties are assessed, maintained, and rented out—it’s not just another compliance task. The good news? Since most mortgage lenders now provide better rates for higher EPC ratings, you still have time to make energy upgrades that will aid with a refinance. For older rentals, it will inevitably mean a costly upgrade in the next few years.
Contact National Clearances on 0203 9859552.