New EPC Regulations for UK Rentals

Newly let rentals in the UK were expected to meet a minimum energy performance rating of band C, as per a notice from the Department for Energy Security and Net Zero. The government proposed fines of up to £30,000 for landlords failing to upgrade their properties. However, the deadline has now been extended from 2025 to 2028, giving landlords an additional three years to comply.

The Debate Around Mandatory Energy Upgrades

The delay has sparked debate about why the government is not sticking to its original 2025 deadline. Concerns were raised regarding the high costs—estimated between £10,000 and £15,000—required to meet the EPC minimum. These costs represent a significant portion of the property’s value and annual rental income, particularly outside of London and the South East.

Impact on the Private Rented Sector

The uncertainty surrounding these regulations has caused confusion and concern in the private rented sector (PRS). Landlords are grappling with the idea of whether to invest in upgrades or sell their properties, as non-compliance would ban them from renting out their homes. This uncertainty is contributing to a significant exodus of landlords, which could lead to a further shortage of rental properties and rising rents for tenants.

Clarification and Support for Landlords

Landlords are calling for more clarity regarding the dates, requirements, and available support for meeting the new regulations. Recently, it has been confirmed that landlords will have until 2028 to comply with the new minimum band C requirement, allowing them more time to meet the standards.

Upgrade Costs and Future Standards

According to property experts, the cost of upgrading properties to meet the new EPC standards can range from £10,000 to £15,000, depending on the work required. This cost does not factor in any future plans to raise the minimum standard to band B, which is expected to become law in the coming years.

Planning for Compliance

While the 2025 deadline has been extended, landlords are encouraged to take early action to meet the requirements. Proactively upgrading properties will not only help ensure compliance with the 2028 deadline but also prepare landlords for potential future regulations. Early resolution of these issues will benefit landlords in the long run.