In a bid to make the residential property sector more energy efficient and to improve the quality of privately rented properties, the government has made changes to the Minimum Energy Efficiency Standards.

The changes state that by 2025, all new tenancies in England and Wales will legally need to have a minimum EPC rating of a C or above. Failure to meet this could result in landlords landing a fine of up to £30,000, plus may also be unable to rent their property.

The changes are being put into place to help the government meet its target of net zero emissions by 2050 and will be rolled out in two phases. In 2025 all new tenancies will be expected to meet the minimum C rating, but for existing tenancies, the regulations will not apply until 2028.

At Mishon Mackay, we suggest that landlords undergo property improvements, where necessary, as soon as possible. This may include investing in additional loft insulation and a smart meter, upgrading to an energy-efficient boiler, upgrading or installing heating controls, improving windows with double or triple glazing, and switching to LED light bulbs.

The government estimates that it could likely cost an average of £4,700 to upgrade a property, however there is a Green Home Grant scheme available for those who are eligible, but a landlord must spend at least £3,500 to apply for this. Although the proposals are not set in stone, landlords are being advised to start preparing for the proposed changes, particularly with the rising costs of materials and labour. Additionally, with so much spotlight on energy and rising costs, tenants are also taking more of an interest in a property’s EPC rating before renting

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Whether your EPC is due for renewal, or your existing EPC rating is D or below, we suggest getting it renewed sooner rather than later. This renewal process will contain fresh guidance on how to improve a rating to a C or above, plus will include any necessary quotes to complete any work on behalf of our clients. This will ensure you have a solid understanding of what improvements may be needed over the next few years, meaning you can budget accordingly.

It is important to note that once any applicable work has been carried out, a new EPC will need to be generated, but will then remain valid for ten years. This EPC will then be valid for ten years.