Date Published 02 June 2023
The governments' goal to create more energy efficient homes by 2025 has been set back. To create the ‘Net Zero' target, the governments' initial proposal was to impose a minimum EPC rating of C in 2025 across all properties. However, under proposed changes to the Minimum Energy Efficiency Standard (MEES) regulation, rental properties will need an EPC rating of at least C by 2028, with an earlier deadline of 2025 for new tenancies. For sale properties homeowners will face a similar situation in 2035, when the same requirements will apply to all house sales in the UK.
Only 3 out of 10 Landlords are confident that they will reach the EPC requirements deadline. 46% of this admit it will be ‘by the skin of their teeth'. Landlords also say that the tenant demand for energy efficient homes is increasing with 17% being questioned about their EPC rating. Only 34% believe improving energy efficiency in the private rented sector will have a positive impact on the UK's carbon emissions targets and the fight against climate change.
Due to these targets, there has been a lot of feedback in Landlords deciding to sell. Data shows more than 65,000 rental properties were put up for sale by Landlords in the first 3 months of 2023. Of those, around 36,500 had energy efficiency ratings of D or less.
In the UK, it is currently illegal to sell or let out a property with an EPC rating below the minimum of E rating. There are many ways to improve your EPC rating including installing double or triple glazed windows, upgrading appliances to higher energy ratings, switching to LED lightbulbs and installing roof or loft insulation.
In the end the governments target would be to reach ‘Net Zero' carbon emissions by 2050 and to help with this they will be bringing in a government scheme for Landlords. This will be capped at £10,000 per property for any Landlords with rental properties.
