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Get your rental property energy efficient by 2025

Aug 8th 2022

Energy efficiency and climate change are major problems right now. Landlords, therefore, need to be aware of how energy efficiency affects them and their rental properties. The Minimum Energy Performance of Buildings Bill, which might require new buy-to-lets to have a minimum EPC rating of C as early as 2025, is something landlords should be considering right now.

Get your rental property energy efficient by 2025

Energy efficiency and climate change are major problems right now. Landlords, therefore, need to be aware of how energy efficiency affects them and their rental properties. The Minimum Energy Performance of Buildings Bill, which might require new buy-to-lets to have a minimum EPC rating of C as early as 2025, is something landlords should be considering right now.

What you need to understand about EPCs

Energy Performance Certificates are known as EPCs and they first appeared on the scene in 2007. They serve as a tool for evaluating a building’s energy efficiency. A property evaluation is carried out by a certified energy assessor, who takes into account a number of factors that have an impact on energy efficiency:  Doors & windows, insulation, heating, and lighting.

A 10-year EPC is then produced which rates a building’s energy efficiency on a scale of A (the most efficient) to G (the least efficient).  When a property is first constructed, when it is sold, and when it is rented out, an Energy Performance Certificate that has been granted within the last ten years is legally required.  For rental properties, at the present time in Bristol, the minimum energy requirement is an E (unless the property is exempt – eg, listed building).

What the New EPC 'C' Energy Efficiency Targets Mean

The Minimum Energy Performance of Buildings Bill, which is now being debated in parliament and could mean that as soon as 2025, this minimum energy efficient standard (MEES) could go from E to C.

Around two-thirds of all homes in the UK may have an EPC rating that is lower than C and hence would not comply due to the vast number of older dwellings in the country.  There is an aim for all residential properties, not just buy-to-let houses, to meet EPC C by 2035 as part of the measures for energy efficiency.

By 2030, mortgage lenders are also expected to have an average band C across their lending book.  The proposal to lower the minimum EPC rating for rental properties is part of an effort to lower carbon emissions from buildings, attain net carbon zero, and enhance the energy efficiency of households.

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