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  • Writer's pictureOlivia Thomas

Will Landlords andLetting Agents face issues in the future with the proposed property EPC bands?

It has been illegal to rent out a property with an EPC rating of below band E (without an exemption) since April 1st last year, however the government says the minimum level of energy efficiency required will be raised to band C by 2030. This is just 9 years away, and our own research shows that many landlords are not even aware of this impending change.

This required change to band C by 2030 forms part of the government’s recently-announced plans to set the world’s most ambitious climate change target, which will be to reduce emissions by 78% compared to 1990 levels, by the year 2035.

Recently published research however reveals that millions of rented homes in the UK will never be able to reach the statutory C band no matter what improvements some property owners make to try and achieve this EPC rating.

Rightmove says that its own research on the subject has been released to coincide with World Environment Day and shows that approximately 1.7 million properties in the UK that currently have an EPC rating between bands D and G cannot be improved sufficiently to achieve the statutory C rating required by 2030.

In January this year, a consultation on EPC ratings for rented properties closed. It set out how the government requires the upgrading of as many private rented sector homes as possible to B and C by 2030, with the caveat “where practical, cost-effective and affordable”.

Rightmove says that landlords wishing to upgrade their homes to an EPC C band rating can do so by making relatively inexpensive improvements to their properties, these might include insulating a hot water cylinder, installing low energy lighting in all areas, draught proofing single-glazed windows and increasing loft insulation.

Properties for sale are not currently affected by EPC regulations, however the government has recently proposed that they could force mortgage lenders to link lending to a property’s environmental performance.

If you would like to understand the impact of EPCs on rented properties in more detail, please don’t hesitate to contact a member of our expert Lettings team.

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