New EPC laws mandate that by 2025 newly rented buildings must have an EPC rating of at least “C”.

All newly rented dwellings in England and Wales must abide by this requirement. Both residential and commercial properties are subject to these new rules and non compliance may result in landlords being subjected to heavy fines.

The new regulations are designed to make sure that all landlords are contributing to the effort to make rented properties as energy efficient as possible.

How will the new EPC regulations affect landlords?

60% of the countries privately rented properties [domestic residential] have an EPC rating of “D” or lower. Landlords are wholly responsible to make the necessary energy efficiency improvements to reach a ‘C”.

The complexity of energy improvements could be a challenge and demand is currently growing. Therefore landlords who don’t act swiftly and in advance of the deadline, may have properties that do not meet the minimum energy performance threshold and hence can’t re-let.

What will the price of EPC upgrades be?

This entirely depends on your property type, age and current energy performance.

Landlords should budget anywhere between £4,000 and £40,000 for improving their property’s Energy Performance Rating, however funding is available via ECO4 and The Great British Insulation Scheme.

Landlords that act now will not only secure funding but can also increase rental yield due to the improved energy efficiency. Yield can increase 10% per annum for a home that rates at C or above.  

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