The Prime Minister, the Rt Hon Rishi Sunak has decided to cancel the proposed energy efficiency targets for households, including rental properties. Originally set to take effect in 2025, the changes to Energy Performance Certificate (EPC) requirements mandated all properties under new tenancy agreements to achieve a rating of C or above by 2028. Prime Minister Rishi Sunak, in a recent speech, cited the impracticality and financial burden on property owners, stating, “Under current plans, some property owners would have been forced to make expensive upgrades in just two years’ time.”
An Energy Performance Certificate (EPC) is a report that provides detailed information on a property’s energy efficiency and CO2 emissions. If you’re a landlord, it’s important to ensure that your property meets the latest regulations, known as the Minimum Energy Efficiency Standards, and has a valid EPC. To get an EPC, you need to have an Energy Assessment Survey conducted by a Domestic Energy Assessor. Libra Energy can do this for you. Contact us now and one of our assessors will be happy to arrange a visit to your premises. The assessor will evaluate the property’s energy efficiency by looking at areas such as windows, roofs, walls, insulation, boilers, heating systems, renewable energy devices, lighting, fireplaces, building dimensions, and age. The property will then be graded on a scale of A (best) to G (poorest), with a valid EPC rating of E or above being required to legally let the property.
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The property industry’s response has been mixed. Some welcome the relaxation of rules during a cost-of-living crisis, while others accuse the government of postponing essential measures. Many independent commentators have expressed relief for landlords facing no immediate deadline for upgrading properties below the required standards. However, concerns arise about the potential frustration for landlords who have already invested significantly in improving energy efficiency. Despite the short-term relief for landlords, there is a call for long-term stability and clarity in the property sector. Many independent energy performance certificate or EPC providers have declared the government’s wavering stance to be a betrayal of both landlords and tenants, negatively affecting businesses and the overall stability of the rental market. Whilst the cancellation may alleviate financial strain during a cost-of-living crisis, critics argue that it delays addressing the UK’s inefficient housing stock, hindering progress toward net-zero targets. Improving a property’s energy efficiency to meet the latest standards can be costly, with estimates suggesting it could cost around £10,000 to bring a property rated D up to C or above. Many landlords who were unable or unwilling to make the necessary upgrades have simply left the rental market, resulting in a smaller market, less choice for tenants, and potentially higher rental prices. As a landlord, it’s important to stay informed about changing regulations and to prepare for any necessary upgrades or exemptions.
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