Complying With Band C Regulations

Newly let rentals in the UK were expected to achieve at least a C energy performance rating, according to a notice issued by the Department for Energy Security and Net Zero. The ministers also proposed a fine of up to £30,000 if landlords failed to upgrade their properties to a minimum band C. It is now reliably learned that the 2025 deadline has been extended to 2028, giving landlords three more years to catch up with the regulations.

Mandatory energy upgrades

The decision will likely fuel a debate about why the government cannot remain firm on its directives. Earlier Government legislation had demanded that properties meet a minimum of band C by 2025. Concerns were raised at that time on how landlords in areas where the circa £10,000 - £15,000 costs of meeting the EPC minimum were expected to pay for the mandatory energy upgrades. It represents a major portion of the bricks-and-mortar value and annual rental income, particularly outside London and the SE.

This fallout has been felt throughout the private rented sector (PRS). Landlords were not sure what the future had in store for them. Not meeting the energy standards would mean a ban on renting out property. Complying means they must raise funds to finance the upgrade requirements. Many landlords are considering selling off their properties as they are unsure how to fund the upgrades. Already a massive exodus has been reported from several areas. This will result in more shortage of rental properties resulting in a higher cost of renting for future tenants.

The community also needs more clarity on the dates, requirements, and support with funding for the new requirements. Many landlords have requested greater support from the government and more details of the scheme. In the last few days, news reports indicate that landlords will be given an additional three years to meet the minimum requirement. The extended timeline will allow them until 2028 to comply with the government rules.

According to property experts

According to property experts, costs for upgrades to meet the new regulation can range anywhere from £10,000 - £15,000, depending on the scope of work required. It must be borne in mind that these estimates are for getting the property ready to meet the new minimum requirement. It doesn't consider any plans to increase the minimum standard to band B in the future. Such plans are on the horizon, and many become law in the not-too-distant future.

Meanwhile, ministers and stakeholders are discussing ways and means of overcoming the problem around the upgrades, but no decision has yet been made. Landlords are aware that getting their properties into shape to comply with the minimum C requirements is not an immediate problem, especially when there is a strong likelihood of the date being extended from 2025 to 2028. However, the upgrades will happen, so an early move to resolve the problem will be in the best interests of all landlords affected by the issue.

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