Landlords across the UK are to be subject to new regulations as part of the Government’s green agenda.
Plans to raise the minimum efficiency rating of rental property in England and Wales will come into effect in 2025. The new regulations will require all properties in the private rental sector to have a minimum of a band C EPC rating. However, current regulations only require a minimum of a Band E rating.
The changes will largely affect owners of older, less energy-efficient properties. Did you know that UK private rented sector property is the oldest in Europe and also the least energy-efficient in the country?
With that in mind, the average cost of bringing a property up to standard is estimated at £7,646. Of course, some properties will require considerably higher levels of work and investment to meet the requirements.
Below are the sort of adaptions landlords can do to improve the energy efficiency of their property;
- Upgrade lighting to LED light bulbs
- Insulate the walls and roof
- Improve windows with double or triple glazing
- Install an energy-efficient boiler
- Use a smart meter
The new regulations don’t come into effect straight away. New tenancies will require EPC C ratings from 2025, while all other tenancies will need to be compliant by 2028. Any properties that don’t meet the requirements by 2025 will be unable to be advertised for rent.
There is some concern from those within the industry, such as ARLA, that these regulations will have severe financial implications for landlords. Therefore, landlords entering the market are likely to look towards new build properties with high energy efficiency ratings to ensure they are not hit with large costs down the line.