Rental Regulations / Residential

Changes to EPC Regulations

September 19 2024

One of our new Labour Government's biggest challenges is achieving net-zero emissions by 2050. To support this, the government has pledged that all homes within the private rented sector (PRS) must meet an EPC rating of C by 2030.

According to research by Reapit, the cost of retrofitting all PRS properties in England, Wales and Scotland to a C rating is estimated at £24.03bn, with the average cost for a landlord per property being in the region of £10,442.

Any upgrades to a property could be considered a capital expense, potentially allowing landlords to offset the expenses through tax returns. However, you must refer to your accountant for further advice.

Factoring in possible loss in stock due to landlords' inability to make these required changes and subsequently leaving the PRS market, it has been estimated that rents may increase by an additional 3.2% across the UK.

The UK Government will continue to develop incentives, such as the Boiler Upgrade Scheme and the Great British Insulation Scheme, to help provide funding through installers, energy companies, and other bodies.

 

Regulation compliance and penalties

Under the Energy Performance of Buildings (England and Wales) Regulations 2012, a valid EPC rating must be shown in any property listing for Sales and Lettings.

Failure to comply with the law could result in a fine of £200 per advertisement. Sellers or landlords can also be fined £500 for not providing the tenant or buyer with a copy of the EPC and up to £5,000 if a property is sold or let without a valid EPC.

Without a valid EPC given to the tenant, a no-fault eviction cannot be served until this is amended by the Renters Rights Bill.

When an agent receives an instruction for a property, they should always check for a current EPC before creating the listing and include the details within the property information.

It remains the responsibility of the seller or landlord to make sure a valid EPC has been given free of charge to the person who will ultimately become the buyer or tenant.

For more information on EPC changes or property advice, contact our residential property team on 020 8520 9911.