How landlords can improve their EPC rating
Since April 1, 2020, properties in England and Wales must have a minimum Energy Performance Certificate (EPC) rating of E or above. If your property is rated F or G, you’ll need to improve its energy efficiency before it can be rented out again.
The government is proposing to increase the minimum EPC rating for private rental properties to C by 2028. New tenancies will need to meet this by 2028, while existing tenancies will have until 2030. If your property is currently rated D or lower, you’ll need to make further improvements before the deadline.
Currently, around 52% of rental properties in England and Wales have an EPC rating below C, so many landlords face a challenge in bringing their properties up to standard. Improving an EPC rating from band E to band C is estimated to cost around £8,000, increasing financial pressure on landlords and prompting some to exit the market entirely.
While 2028 may seem far off, tackling upgrades now will help avoid last-minute costs and stress.
Where to start:
If you're unsure of your property's rating, order a new EPC assessment. This will provide a baseline and help you identify areas for improvement.
The EPC will typically include a list of recommendations to improve your property's energy efficiency. Some common steps you can take include:
- Insulation: Improving roof, floor, and wall insulation can significantly increase your property’s energy efficiency.
- Double glazing: Replacing single-glazed windows with energy-efficient double glazing reduces heat loss.
- Efficient heating: Upgrading to a more efficient heating system or adding smart thermostats can help reduce energy consumption.
- Lighting: Replace incandescent bulbs with energy-efficient LED bulbs to reduce energy use.
- Draught proofing: Seal gaps and cracks around doors and windows to prevent heat loss.
Some of these measures may be eligible for government grants or incentives, so it’s worth exploring available funding options.
A higher EPC rating also gives you a competitive edge - highlighting it in your listings can attract tenants focused on energy efficiency and sustainability.
Government grants and schemes:
There are various financial incentives available for landlords to improve their properties' energy efficiency. These may include:
- Energy Company Obligation (ECO4): This scheme helps low-income tenants access energy-efficient upgrades, such as insulation and new heating systems. If your tenants meet the criteria, you could access this funding at no cost.
- Home Upgrade Grant Phase 2 (HUG2): This scheme offers free energy-saving upgrades worth up to £38,000 for eligible tenants with a combined income below £36,000 or who receive certain benefits. Landlords can access this funding to improve rental properties with low energy efficiency ratings (typically E or below).
- Boiler Upgrade Scheme: Landlords can apply for grants of up to £7,500 to replace gas boilers with environmentally friendly heat pumps, helping reduce energy costs and environmental impact.
Before starting any major improvements, it’s worth checking what funding options may be available to you.
Meeting EPC targets is not only a legal obligation but also an opportunity to increase the value of your rental property, attract quality tenants, and lower ongoing energy bills and maintenance costs. By understanding the requirements, planning improvements, and staying informed about future changes, you can ensure your properties remain both compliant and competitive in the rental market.