Energy Performance Certificates (EPCs) are required for properties in the UK when they are constructed, sold, or rented. They provide information on the energy efficiency of a property and are rated on a scale from A (most efficient) to G (least efficient). Landlords are required to provide EPCs to tenants and display them in property advertisements.
The Government had planned that privately rented homes should have a minimum EPC rating of C by April 2025, and all rented accommodation should be covered by April 2028.
However, studies suggest that 1.7 million privately rented homes may never achieve this energy efficiency level, reportedly costing up to £10,000 per property to upgrade.
The Government has now announced that legislation will not be implemented to push landlords to achieve an EPC C-rating.
Based on this change, landlords must still aim to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E). More information can be found here – Domestic private rented property: Minimum energy efficiency standard – landlord guidance.
Even though the Government is not making changes to the EPC levels required, they still want landlords to look at ways to improve the energy efficiency of their properties. To support this, they have stated that the Boiler Upgrade Grant will be increased from £5,000 to £7,500.
The Government wants to encourage landlords to switch from gas boilers to heat pumps. The plan to start phasing out fossil fuel boilers by 2026 is pushed back to 2035.
This grant is available to landlords who want to install heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales.
Associations such as Propertymark have welcomed this change in the Government's approach. They believe landlords should work towards more energy-efficient properties but need the flexibility to make realistic and affordable improvements.
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