New Plans: Landlords to Improve Energy Efficiency of Homes by 2030
EPC (Energy Performance Certificates) are currently required for all buildings and must achieve a score of at least an E rating, or it is unlawful to buy/sell, rent, or lease said property. However, under new proposals from the government, landlords of privately rented homes must meet an EPC rating of C or above by 2030. But what is an EPC?
What is an Energy Performance Certificate?
An EPC is a document that evaluates the energy efficiency of a property. This certificate examines various aspects of a property, such as insulation, windows, heating, hot water, and lighting. After these and other factors are assessed, a rating from A to G is assigned as follows:
- EPC A – 92-100 SAP Points
- EPC B – 81-91 SAP Points
- EPC C – 69-80 SAP Points
- EPC D – 55-68 SAP Points
- EPC E – 39-54 SAP Points
- EPC F – 21-38 SAP Points
- EPC G – 1-20 SAP Points
(SAP - Standard Assessment Procedure used for residential assessments)
Once the assessment is complete and the rating is assigned, changes can be made to your property to improve its rating. Suggestions for implementing these changes can be found on the certificate or advised by the assessor, along with an outline of costs and potential savings on annual bills once the changes are made.
What are the Government's Proposed Changes?
Currently, the legally required EPC rating for all properties is at least an E, but new government plans have stated that this will change with a rise in the requirement of EPC ratings to a C, for privately rented homes only initially. The change is to help take renters out of fuel poverty and making homes more affordable to heat and maintain. It is worth noting that this change will help with working towards the UK’s commitment to zero carbon emissions by 2050.
This new legislation will apply to privately rented tenancies from 2028 and the government's plan includes a Warm Homes: Local Grant, which will help private landlords fund their EPC upgrades.
Funding can be up to £15,000 for eligible energy improvements, which include:
Solar PV panels:
These generate free electricity and allow landlords to sell excess electricity back to energy providers via the Smart Export Guarantee, creating an additional income stream.
Air Source Heat Pumps (ASHPs):
These take heat out of the air to provide heating and hot water and are often paired with solar panels for a complete energy-efficient solution.
Electric panel heaters:
These are simple electric radiators suitable for smaller properties like flats where ASHP installation may not be feasible.
Insulation upgrades:
This includes loft insulation, cavity wall insulation, and both internal and external solid wall insulation to reduce heating bills.
However, to qualify for these grants, properties must meet specific conditions:
Properties rated D, E, F, or G are eligible, while those already rated A, B, or C are not. Grants are prioritised for properties using oil, LPG, coal, wood or electric heating; homes with mains gas heating may only qualify for insulation upgrades. The tenant must have a household income below £36,000 annually or have a long-term health condition, such as asthma or arthritis, verified by a GP. Landlords need to confirm that any grant assistance will not exceed the cap of £315,000 over three years, as per the Minimum Financial Assistance threshold Landlords must agree not to raise rent, and they also must partake in surveys or evaluations conducted by the Department for Energy Security and Net Zero. As much as this grant is great for landlords, it is also worth noting that some funding is available for local authorities, and certain boroughs can receive funding for this grant.
Conclusion
The government’s proposed changes to EPC requirements signal a significant shift in the UK’s efforts to create a more energy-efficient and environmentally conscious rental sector. By raising the minimum standard to a C rating by 2030, these regulations not only aim to reduce carbon emissions but also seek to alleviate fuel poverty and improve living conditions for tenants. With funding support available through initiatives like the Warm Homes: Local Grant, landlords have the opportunity to make impactful upgrades that benefit both their properties and the wider community. However, careful attention to eligibility criteria and funding limitations will be essential as these changes come into effect. Ultimately, this move represents a step forward in the UK’s journey towards a greener and more sustainable future.
As information is released and this change progresses, we plan to keep you informed.
If you need help with your privately rented properties' EPC rating, we are here to help. With a wealth of knowledge, our energy team aim to improve your property.
For more information, contact us today.
