01268 90 44 44 sam@mymortgageangel.co.uk

If you’ve been searching for properties online, you’ll have seen that each one carries an individual EPC rating. 

EPC stands for Energy Performance Certificate.  This rates a property’s energy efficiency on a scale from A to G, with A the most efficient, and G the least.  

A low rating usually means the property is harder and more expensive to heat; related to issues like poor insulation, and inefficient lighting, water, and heating systems.  

So, whether you rent or buy, it makes sense to aim for a higher EPC rating, not least because your energy bills will be lower! 

How do EPC ratings work for rented properties? 

Landlords are legally required to provide prospective tenants with a free-of-charge EPC, which is needed for any home that has its own bathroom and kitchen facilities.  

Currently, the minimum EPC rating required for rental properties in the UK is an E. Certificates are valid for 10 years, after which landlords only need to renew them when the property is re-let to a new tenant. 

What are the new EPC regulations, and how will they be implemented? 

In order to progress their net-zero and fuel poverty targets, the government has proposed new regulations that will change the Minimum Energy Efficiency Standards in England and Wales. 

Due to take effect in 2025, these new regulations mean that rented properties must have an EPC rating of C or above. 

Starting with new tenancies from 2025, the changes will be phased in to include all existing tenancies from 2028.  They will apply to all domestic and private rental properties on leases lasting from six months to 99 years. 

Landlords who do not comply with the new regulations could face vastly increased penalties of up to £30,000. 

What impact will the new EPC regulations have on landlords and their tenants? 

For tenants, a higher EPC rating can only be good news, since it signals cheaper energy bills, and a diligent landlord who is willing to invest in the property.  These are likely to be key differentiators for tenants deciding which home to rent.  

Meanwhile, some landlords, particularly those with lower-rated properties, will have work to do.  

Solutions range from the simple, such as fitting LED lightbulbs, to the more costly and complicated, for example upgrading to an energy-efficient boiler, or installing solar panels. 

How should landlords prepare for the new EPC regulations? 

My first piece of advice to landlords is this.  Don’t bury your head in the sand! 

2025 may feel like a long way off, but it will come round sooner than you think.  Leaving your property improvements to the last minute also means you’ll risk being part of a stampede of landlords racing towards the deadline – and your preferred tradespeople being fully booked for months. 

If you’re concerned about funding the work required on your property, talking to a qualified mortgage advisor will help you explore your options in greater detail.  

For example, you don’t necessarily need to be at the end of your current rate to discuss re-mortgaging, or apply for a further advance.  Don’t assume there’s nothing you can do – if you haven’t checked, how will you know? 

To ask questions, or discuss the new regulations in greater detail, please get in touch. 

Oh and I must tell you that the Financial Conduct Authority do not regulate advice on EPC ratings and regulations.


Approver Quilter Wealth Limited & Quilter Mortgage Planning Limited. 06/07/2022