The government has scrapped its plans to require rental properties to be more energy efficient. As part of a reduction in commitment to green issues, it now intends to allow landlords to continue letting properties with low energy efficiency ratings.
The government previously intended to change the law so that rental properties would have to have a minimum energy efficiency rating of C by 2025 when leased under new tenancies. It was also proposed to require properties with existing tenancies to increase their energy efficiency to a C rating by 2028.
Many landlords had already started work to raise their rating ready for the 2025 deadline, but in a September speech on reductions in green commitments, Rishi Sunak abandoned both policies.
Energy ratings
The current minimum rating for a tenanted property is an E. There is a fine of up to £5,000 for non-compliance and tenants can complain if they believe their landlord is breaking the rules.
Energy efficiency ratings are calculated by assessors who provide a property with an Energy Performance Certificate (EPC). This rates a property from A to G, with A being the most efficient. Every home that is sold must have a valid in-date EPC. They last for ten years, but if you are selling a property and you have done work that might improve your energy rating, you may want to have your property assessed to see if you are entitled to an EPC with a better rating.
The government’s English Housing Survey 2021 to 2022: energy revealed that less than half of privately rented homes had an EPC of A-C in the period in question. This means that many landlords would have needed to carry out energy efficiency improvements to raise their rating.
Improve your EPC rating
Despite the government’s stance, it still makes sense to improve EPC ratings where possible. This can make a property more attractive to potential buyers and tenants and also reduce energy costs.
Some of the main ways to reduce energy usage are:
- Insulate the walls and roof space – it is important to ensure adequate ventilation reaches the property to avoid moisture and mould problems however
- Insulate the floor
- Add solar panels –this could potentially improve your EPC rating but only if you already have a rating of at least D. You can have panels that feed into the grid as well as supply electricity to the property
- Add double or triple glazing
- Replace your boiler with a ground source heat pump
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