Two years ago the government completed a consultation into energy efficiency standards in rented homes and proposed a deadline for landlords in England and Wales to meet mandatory efficiency standards.
In an attempt to reduce the UK's carbon footprint, make buildings more energy efficient and ensure lower energy costs for tenants, the government mandated that newly rented buildings must achieve an Energy Performance Certificate (EPC) rating of 'C' or better from April 2025. For landlords with existing rented properties, they were given a deadline of until 2028 to ensure their properties achieved a 'C' or higher rating.
However there is talk of these proposed deadlines being pushed back, along with a potential overhaul of the EPC system in England and Wales.
EPCs are required where a building or building unit is to be sold or let and are an important source of information for current and potential occupiers as they help them to understand the energy performance of the buildings. However critics of them argue that they don't accurately reflect the true energy performance of a building.
Recently Housing Secretary Michael Gove has hinted that the implementation of the energy efficiency standards which would see landlords having to meet the April 2025 and 2028 deadlines will be delayed. This move is believed to be in response to challenges in the housing market and as a way to support landlords.
A survey by Paragon bank has already found that the upcoming EPC changes for rental properties is already affecting how landlords purchase property, with two thirds of landlords questioned stating that they would factor in the new EPC rules when purchasing future properties. They also found that 20% of those surveyed have already made improvements to their properties to bring their EPC rating to a 'C' or above, and another 20% are in the process of retrofitting existing properties to achieve a 'C' or higher EPC rating.
Whilst it is really encouraging some landlords are making changes to improve their properties energy efficiency, there is significant talk of a delay to these deadlines, with a Whitehall source quoted as saying the government support a delay to the deadlines for landlords beyond the proposed April 2025 date. They were also quoted as saying the current EPC system needs “fundamental reform” to ensure it provides reliable information.
In Scotland, the government have just published a consultation into EPC reform, with an overhaul of EPC metrics being considered for both domestic and non-domestic properties.
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