Energy Performance Certificates to be tightened up – start planning now

Landlords will have to meet new standards for “Energy Performance Certificate” announced by the Government this year, which will come into full effect in 2030. This will affect both how EPCs are calculated and the minimum standards rental properties must meet.

Clare Amey, Balfours Associate Partner and Property Manager, is urging landlords to be aware that four years is not very long to bring properties up to the EPC “C” standard expected. She explains: “With the Renters Rights legislation currently all the talk and May 1, 2026, being an important deadline, the EPC new ratings may not have been appreciated.

EPC ratings will be based on the fabric performance, equating to insulation and heat retention, heating system efficiency, energy costs and smart-technology readiness of a property.

Clare explains: “Privately rented properties in England and Wales must achieve EPC band “C” by 2030, for both new and existing tenancies. However, there will be a spend cap of £10,000 every ten years trying to reach the target “C” rating or above.  Any improvement expenditure post October 1, 2025, will count. These rules apply unless the property has an exemption, or is valued below £100,000, when an alternative 10% property value cap applies.”

Furthermore, she says EPCs will be required before marketing, rather than before granting a tenancy, thereby providing prospective tenants with accurate and up-to-date information earlier.

“Further details are still to be clarified by the Government. These include landlords’ responsibility to maintain a valid EPC throughout the tenancy and how the system works where there are multiple layers of landlord. As can be the case with agricultural tenancies,” she adds.

Clare concludes: “The real point is for landlords to be aware and plan that in less than four years the legislation will be up and running, so when work needs undertaking in a property between now and then, it is worth seeking professional advice.” For more information call Clare on 01743 241181.