What are the new EPC regulations for landlords?

It has been announced that in a bid to combat the UK’s carbon footprint, new regulations for EPC’s for privately rented properties will come into effect from April 2025. Failure to comply with these EPC requirements for landlords could result in significant penalties, including fines and restrictions on letting the property

Currently, landlords must ensure that their rental properties have a valid EPC with a rating of at least ‘E’ or above. Below are the newly proposed regulations, set to come into effect from 2025.  

From April 2025 all new tenancies are required to have an EPC with a rating of ‘C’ or above

From April 2030 all new and existing tenancies are required to have EPC with a rating of ‘C’ or above.  

‍

How do I raise the EPC rating on my rental property?

When considering what updates need to be made to meet the new minimum standard for EPC’s on privately rented properties, it can be helpful to refer back to your current EPC to determine the areas that would benefit most. Below is list of common updates that could be considered.

• Updating boiler and heating system to a more efficient unit

• Replacing single pain windows to double gazed windows  

• Installing loft or wall insulation  

• Replacing light bulbs to energy efficient  

• Installing solar panels  

‍

What financial support is available to landlords looking to raise their EPC rating?

There are various options to help landlords manage the cost of making their rental properties more energy efficient and raising their rating to meet the new minimum requirement. For more information of the grants available, landlords can visit  www.energysavinggrants.org and complete the Eligibility Grant checker. Landlords can also contact Energy Saving Grants on 03302230333 

• Interest free or low interest loans are available from some local councils, specifically for energy efficiency improvements

• Schemes such as the Energy Company Obligation (ECO4) provide financial assistance to improve energy efficiency in properties. These schemes often cover insulation, heating systems, and other upgrades for eligible landlords.

• The Great British Insulation Scheme (GBIS) This scheme covers funding for wall insulations for eligible properties with an EPC of ‘D’ or below and a council tax between A-D in England or A-E in Whales and Scotland.

• The ECO Scheme which aims to cover up to 100% for properties that use Oil, LPG, Electric, Coal or Wood for heating. If the property has is mains gas central heating, unfortunately it would not qualify for funding under this scheme. The tenants must also meet the criteria set out by the scheme for the landlord to access to the funding, including being in receipt of certain benefits, a household income of no more than £31,000 per annum and evidence of a long-term health issue. Signed evidence from the tenants GP may be required.  

‍

What is the cost cap for landlords on improvements to raise the properties EPC rating?

The government have currently set a cost cap of £3500.00 for improvements to raise a properties EPC rating to a minimum rating of ‘E’, but this may change as the regulations evolve.

‍

What are the exemptions for meeting the minimum EPC requirements for landlords?

Landlords seeking an EPC 2025 exemption must apply through the appropriate channels and provide evidence to support their claim. This process may involve submitting documentation, such as quotes for the cost of upgrades, correspondence showing attempts to obtain consent, or evidence of the property's listed status.

It's important to note that exemptions are not automatic and must be granted by the relevant authorities. Landlords should apply for exemptions well in advance of the 2025 deadline to ensure they are not caught out by the new regulations.

Landlords should also be aware that exemptions are typically time-limited and may need to be renewed periodically. This means that landlords may still need to make upgrades in the future if circumstances change. See a list of possible exemptions below.

The MEES Regulations refer to the concept of ‘relevant energy efficiency improvements’. This is a measure, or package of measures, recommended in your EPC report, which can be purchased and installed for £3,500 or less (including VAT) - the cost cap.

• ‘All relevant improvements made’ exemption - Register this exemption if the property is still below EPC C after improvements have been made up to the cost cap (£3,500 incl VAT), or there are none that can be made. This exemption lasts 5 years. After that it will expire and you must try again to improve the property’s EPC rating to E. If it is still not possible, you may register a further exemption.

• ‘High cost’ exemption - Register this exemption if no improvement can be made because the cost of installing even the cheapest recommended measure would exceed £3,500 (including VAT). To register this exemption, you need to provide this additional information which include 3 quotes from qualified installers for purchasing and installing the cheapest recommended measure, demonstrating that the cost would exceed £3,500 (including VAT)

• Wall insulation exemption - Register this exemption if the only relevant improvements for your property are cavity wall insulation, external wall insulation or internal wall insulation (for external walls). You must obtain written expert advice showing that these measures would negatively impact the fabric or structure of the property (or the building of which it is part). This exemption lasts 5 years. After that it will expire and you must try again to improve the property’s EPC rating to E. If it is still not possible, you may register a further exemption.

• Third-party consent exemption - Register this exemption if the relevant improvements for your property need consent from another party, such as a tenant, superior landlord, mortgage provider, freeholder or planning department, and despite your best efforts that consent cannot be obtained or is given subject to conditions you could not reasonably comply with. This exemption lasts for 5 years or, where lack of tenant consent was the issue, until the current tenancy ends or is assigned to a new tenant. In either case, once the exemption comes to an end, you need to try again to improve the EPC rating of the property or register a further exemption. To register this exemption, you need to provide this additional information: copies of any correspondence and/or relevant documentation (such as a letter from your tenant, or a planning department decision notification) demonstrating that consent for the recommended measure was required and sought, and that this consent was refused, or was granted subject to a condition that you were not reasonably able to comply with

• Property devaluation exemption - Register this exemption if you have evidence showing that making energy efficiency improvements to your property would devalue it by more than 5%. In order to register this exemption, you will need a report from an independent surveyor. This surveyor needs to be on the Royal Institute of Chartered Surveyors (RICS) register of valuers and their report must advise that the installation of the relevant improvement measures would reduce the market value of the property, or the building it forms part of, by more than 5%. This exemption lasts 5 years. After that it will expire, and you must try again to improve the property’s EPC rating to E. If it is still not possible, you may register a further exemption.

• Temporary exemption due to recently becoming a landlord - If you have recently become a landlord under certain circumstances (see section 4.1.6 in Chapter 4 of the full Guidance document for details of those circumstances) you will not be expected to take immediate action to improve your property to EPC E. You may claim a 6-month exemption from the date you became a landlord. This exemption lasts 6 months from the date you became the landlord. After that it will expire and you must have either improved the property to EPC C or registered another valid exemption, if one applies. To register this exemption, you need to provide this additional information: the date on which you became the landlord for the property and the circumstances under which you became the landlord.