Changes to EPC rules could be expensive for landlords
1st June 2022 by John Munro
Energy Performance Certificates, or EPCs, give an energy performance rating for properties, with the most energy efficient properties being awarded an A rating while the least efficient are rated as a G. Current legislation requires landlords to achieve a minimum of an E rating in order to legally rent out a property. A new government energy performance bill proposes raising this to a C rating.
The new Minimum Energy Performance of Buildings Bill suggests that as from 2025, properties that will be used for new tenancies must be rated C or above. As from 2028 all rental properties will need to meet this standard. Tenants have a right to receive an EPC when moving into a property.
It is also proposed to increase the penalty for landlords who do not have a valid EPC from £5,000 to £30,000 from 2025. This is part of the government’s work to try and meet a target of net-zero for carbon emissions by the year 2050.
Improving energy performance
With substantial increases in energy prices and rising concern on the part of both buyers and tenants when it comes to energy efficiency, measures to improve energy performance will be welcome on several fronts.
Period homes can be harder to raise ratings, for example, if it is not possible to insulate walls or add double glazing. New properties may already have some energy efficient features and it is often easier to add more.
The following have the potential to improve an EPC rating:
- Loft insulation
- Wall insulation
- Double or triple glazing
- A new energy efficient boiler
- Using a renewable energy source such as solar panels or a ground-source heat pump
- Ensure all lighting is as efficient as possible, using LED light bulbs
- Install a smart meter and smart thermostat
- Insulate the hot water cylinder, if there is one
- Seal or replace draughty doors
Exemption from EPC
Very few rental properties will be exempt from the need to obtain an EPC certificate. Exemptions include listed buildings where energy efficiency improvements would unacceptably alter the property and detached buildings where the total floor space is less than 50 square metres.
Obtaining an EPC
An EPC is available from an accredited domestic energy assessor. They will visit the property and report on the following:
- Energy usage
- Carbon dioxide emissions
- The amount of energy the property uses and level of energy efficiency
- Carbon emissions
The report will also make recommendations on improving energy efficiency and give an estimate of the potential costs and possible savings. You will also be advised whether you are likely to be eligible for any related benefits.
If you would like any further information on EPCs or other areas relating to your property you can visit our Residential Property page on our website or contact Kelly Howe on k.howe@laceyssolicitors.co.uk or 01202 377800.
John Munro
Partner — Commercial and Residential Property
Direct dial: 01202 377839
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“John Munro was friendly and very approachable, advising me with a clear depth of knowledge and experience. I have since recommended him and will do so if asked in the future.”
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“Changing solicitors is not to be undertaken lightly. However really impressed with the way that John Munro and his associates have dealt with us over the last couple of years in a variety of complex property related transactions and on the commercial and personal front as well. We look forward to working with them going forward.”
John joined Laceys in 2001 on a training contract, having completed a Post Graduate Diploma in Law in 2000, and qualified as a solicitor in 2003. He is now the Head of the Commercial and Residential Property Departments.
He is also the firm’s Senior Responsible Officer under the Law Society Conveyancing Quality Scheme (CQS) with overall responsibility for the management of the property team and their delivery of the excellent service that our clients have come to expect.
John acts in his own capacity for a number of commercial property owners, developers and investors, but also allocates time to ensure his team are up to speed with changing law and professional regulations and clients are provided with members of the team who possess the right skills to deal with their individual requirements, delivering projects in the most time and cost-efficient manner.
Outside of work John seems to spend a great deal of time ferrying his children around but occasionally gets to put his feet up and listen to his eclectic collection of vinyl. He is also not averse to a good cheeseboard and a glass of IPA.
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