It’s important for landlords to pay close attention to these changes and how they may impact them.

What is an EPC rating?

The Energy Performance Certificate (EPC) is a requirement for all rental properties in England and Wales. It shows the energy efficiency of the property, as well as useful information on how you can make it greener and more efficient. It serves as a legal requirement for landlords and is essential for potential buyers or tenants. If a property has a low rating, then the buyer or tenant will know that the energy bills for that property could be high.

The property is given a rating of between A and G. The more energy-efficient a property, the closer to A in the alphabet the rating will be. Any property in England, Scotland or Wales that is either being built, marketed for sale or let as an entire property requires an Energy Performance Certificate (EPC).

What is the new EPC legislation and how does it affect me?

The government made changes to the Minimum Energy Efficiency Standards (MEES) for England and Wales in late 2021 stating that as of 2025, all rental properties will need an EPC rating of ‘C’ or above, with similar changes coming into effect in 2028 to include all tenancies. This new EPC legislation hope to make homes more energy-efficient and reduce carbon emissions in line with the government net-zero carbon target by 2050.

The new Minimum Energy Efficiency Standards will make your home more energy efficient, reducing carbon emissions and helping you save money on your energy bills. As a landlord, it’s vital that you find out more about this new EPC legislation and take steps to ensure rental properties meet the standards before their previous requirements.

For landlords, unless you want to risk a fine for non-compliance or not be able to rent at all, you will be compelled to improve your rating.

How EPC rating is calculated

An accredited energy assessor will conduct a visual inspection of your property. They will take a measured survey, photographs, and calculate the EPC rating by looking at any potential for heat or energy loss, checking for insulation throughout the property, looking at how efficient the heating system and water is and ventilation.

Your property is then graded according to a points system which runs as follows:

EPC rating A = 92-100 SAP points

EPC rating B = 81-91 SAP points

EPC rating C = 69-80 SAP points

EPC rating D = 55-68 SAP points

EPC rating E = 39-54 SAP points

EPC rating F = 21-38 SAP points

EPC rating G = 1-20 SAP points

An EPC report is issued alongside the rating which provides energy-saving suggestions on ways to improve your property’s rating.

What EPC ratings are required for lettings as per the EPC legislation?

The Energy Performance Certification was introduced in 2007, rating a property’s energy efficiency.

By law, all domestic and commercial buildings available to buy or rent in the UK must have one.

As of 1 April 2018, there is a requirement for any properties rented out in the private rented sector to have a minimum energy performance rating of E. The regulations came into force initially for new lets and renewals but have now been extended to existing tenancies as well.

How long does my property’s EPC rating last?

An EPC is valid for 10 years and can be used multiple times during this period. The EPC will expire after 10 years and a new EPC should be produced if the property is marketed for sale or rent at that time.

What are the benefits of improving an EPC rating?

Improving your EPC Rating is likely to increase your property’s value. It also means you could reduce your energy bills and reduce your carbon footprint. But most importantly, you will be complying with legislation and avoiding major fines.

How we can help

Our Newable Finance team are ideally positioned to help, we provide EPC funding to help landlords like you refurbish their properties to ensure you beat the deadline. With the lack of skilled labour in the market, and the increasing cost of borrowing, our specialist advisors can find you the most competitive deal on the market from a range of finance solutions. Once you have refurbished your property, we can advise you on an exit strategy, and source you a Green Mortgage, which is much cheaper than a traditional buy to let mortgage.

Get in touch with our team to apply for EPC funding today.