With the new EPC C deadline for all tenancies set for 2030, here are the top ways landlords will meet the new minimum energy-efficiency standards.
With the new EPC deadlines and the proposed Decent Homes Standard coming into force in 2030, there is a high chance the government will implement even tougher regulations for landlords. Some industry experts expect this to include requiring all rental properties to have an EPC rating of B by 2040.
As we wait for more details on the 2030 deadline, an overwhelming 60% of all rental properties (in England and Wales) are currently rated below C. Whilst there may be some exemptions, such as listed buildings and cost caps, a significant number of you now face this uphill challenge on a strict timeline.
Currently, EPC ratings are based on the costs of heating and powering a home. Before the Conservative government left office, they had announced plans to overhaul EPC assessments to ensure heat pumps and systems to improve a property’s energy efficiency factored into a property’s EPC ratings. So far, it seems Labour are choosing to overlook that scheme.
The costs of EPC upgrades
The average cost of improving a rental property’s EPC rating from the currently required E to a C is estimated to be around £8,000 (according to energy data firm epIMS), a staggering financial burden, especially for those of you with multiple rental properties.
Unfortunately, the challenge does not stop there. If you fail to meet the proposed EPC deadline, you could face fines of up to £5,000 or find your properties unrentable and unmortgageable.
How to keep costs down when improving EPC ratings
Home insulation solutions can be a great way to improve your property’s EPC rating at a low cost, reduce your energy bills, and help the environment.
This could include:
- Loft insulation: Estimations from the Energy Savings Trust suggest ¼ of heat is lost through the roof of an uninsulated home. Not only can this increase a property’s value, but it can help you meet the new EPC requirements by reducing your energy costs.
- Insulating plaster systems: These help you to reduce heat loss through walls and, again, reduce your energy costs.
- Underfloor insulation: Again, this will help reduce your energy bills.
How my broker can help me save on energy improvements
Our brokers can review your portfolio to find you the best property finance options to fund your EPC improvements.
Whether a remortgage or a further advance, or even a bridging loan, our experts will find the best option for you.
Next Steps
To see how we can help, call us on 0345 345 6788 or submit an enquiry here.
