By Gemma Everett

Conveyancing Executive

Have you checked your energy performance rating for your rental properties lately?

Since April 2020 there has been a requirement for any residential properties, let out within the private rented sector, to have a minimum energy performance rating of ‘E’ on an Energy Performance Certificate (EPC). For any properties with an ‘F’ or ‘G’ rating, energy efficiency improvements must be made before they can be lawfully let.

For a newer property, these improvements may not take much, but for something older (a Victorian home for example), they could be extremely costly. Some properties were just not built to be energy efficient!

In December 2020, the government announced new standards for England and Wales, and these are to become law by 2025. They are likely to bring substantial cost implications to a large number of landlords across the country.

From this date, it shall become compulsory for all rental properties to have an EPC rating of ‘C’ or above.

The regulations will come into force for new lets and renewals of tenancies with effect from 2025, and then for all existing tenancies in 2028. It will be unlawful to rent a property which breaches the requirement of that ‘C’ rating, unless there is an applicable exemption – these exemptions should be listed on the Public Exemptions Register.

The government have estimated an approximate cost around £5,000.00 for landlords to improve their existing rating from ‘E’ to ‘C’. If you are in this category, it could be time to begin making improvements now, to help spread the cost before the rules are put in place.

A penalty of up to £30,000 could be imposed for any breach of this new regulation.