What the proposed EPC 2030 updates mean for landlords.

The UK Government has recently shared the plan to require private rental properties to have an Energy Performance Certificate (EPC) rating of “C” or above by 2030, as part of the drive to reduce carbon emissions, and increase energy efficiency.

At the moment, the minimum requirement for private rental properties is an EPC rating of “E” or above, in order for landlords to be able to legally let them.

Whilst there was a proposal from the previous Government to require this change by 2023, that was shelved, and the initiative has now been reintroduced, with an updated implementation deadline.

It’s a legal requirement for landlords to share the EPC rating certificates with tenants at the start of a tenancy, or when a new EPC rating is obtained. togetha makes staying compliant easy with automated certificate send outs from the secure landlord document vault, and we’ll even remind you when certificates are due for renewal. To book a no-commitment demo to see how togetha can help you streamline your property management processes, click here: https://calendar.app.google/4VGRfiWgzGmJMLaE9

What are EPC Ratings?

An EPC is rated on a scale from A to G, and assesses how energy efficient a property is. A property that has the most efficient energy will be rated “A”, whilst the least efficient properties will be rated “G”.

The EPC is useful to help people understand how energy efficient a property is right now, and where the potential areas for improvement are.

More than being a legal requirement for landlords, with an up-to-date EPC required for each property, the rating can also help to attract energy-conscious tenants.

Whilst it hasn’t yet been confirmed that the EPC ratings change is definitely going ahead, here’s what landlords need to do to prepare for the requirement of “C” or above:

Conduct an Energy Audit

Evaluate what your property’s current energy performance looks like, so you know where you stand on everything. You can hire a certified energy assessor to do this for you.

Identify the areas where you have opportunities to improve the energy performance, and which items can be improved in the near future, vs those that might require more planning and investment to implement.

Implement Energy Efficiency Improvements

• Insulation: Enhance the current lost and wall insulation to help reduce heat loss.

• Windows and doors: Install double or triple glazing to improve thermal efficiency.

• Heating systems: Upgrade to energy-efficient boilers or consider renewable heating solutions like heat pumps. There are often grants available to help with the cost of converting to renewable energy solutions, so it might be worth researching if you qualify for any.

• Lighting: Replace traditional bulbs with LED lighting, which will help to reduce energy consumption.

Explore Financial Support and Incentives

As we mentioned earlier in this post; there are often various grants and schemes available, provided by the government, to help with the cost of energy efficiency upgrades.

Whilst it will be different from landlord to landlord, some people consider green mortgages, or loans specifically intended for eco-friendly upgrades, so it might be worth shopping around to see if one of these fits the bill for your property business.

Keep up-to-date, Informed, and Engaged

There are several bodies that exist that you can join or follow for regular updates, to make sure you always have the latest information available to you, including the National Residential Landlords Association, the .gov website, and others. You’ll find listings of webinars and workshops regularly updated to share the latest changes and requirements.

Are there exemptions to the EPC Requirements?

There are several situations where it’s recognised that the upgrades for EPC requirements might present more of a barrier, and there are certain exemptions, including:

• High costs: At the moment, the threshold considered to be a “high cost” for improvements, at which point an exemption may apply, is £3,500, however there are proposals to increase this to £10,000 in future.

• Listed buildings and conservation areas: Whilst there are some listed buildings that might be exempt from EPC upgrades, if those upgrades resulted in a significant change to the appearance of the building,

• Property devaluation: If the energy efficiency improvements would reduce the property’s value by 5% or more, which would need to be confirmed by a qualified surveyor, you can register an exemption.

• Whilst the proposed changes to the EPC requirements may require initial investments, in the long run, those landlords who prepare and undertake the work sooner rather than later will be able to reap the benefits sooner as well.

It’s important to stay up to date and informed on requirements, so you can be confident about your legal obligations, as well as optimising your business operations. Check back on our blog for all the updates as they happen, and we’ll share our top tips for staying ahead of the curve when it comes to legislation changes.

Set your property management business up for success with togetha, here to help you scale from 1-1000+ properties. Book your no-commitment demo here: