At present, domestic private rental properties must have an Energy Performance Certificate (EPC) rating of E or above.
However, proposed changes due to take place in 2025 mean all newly-rented properties must have a certification rating of C or above, with existing tenancies needing to comply by 2028.
A survey of 800 landlords commissioned by Aldermore Bank found six in ten (62%) were fully aware of the proposed EPC rules and one in nine (13%) were unaware of the changes.
What’s more, Aldermore said, around four in ten rental properties currently had an EPC rating of ‘D’ or lower.
But the renovations needed looked set to be costly. Indeed, landlords with properties below the EPC rating of C, estimated it would take an average of £10,400 per property to get them up to standard. Nearly half (47%) said it would take £5,000 or less per property.
| Cost of bringing properties up to EPC standard | % |
| Less than £1,000 | 7% |
| Between £1,000 and £3,000 | 17% |
| Between £3,000 and £5,000 | 23% |
| Between £5,000 and £10,000 | 26% |
| £10,000 or more | 27% |
(Source: Aldermore bank)
The majority of landlords, 71%, planned to use savings to pay for upgrades, and one quarter (25%) would use government funding.
However, 23% said they would put u the rent, and 11% would seek a further advance from their mortgage lender.
Jon Cooper, director of mortgage distribution at Aldermore, said: “With people’s lives revolving more around their homes than ever before, a robust private rented sector has never been more vital.
“The data suggests the looming EPC change will cause challenges, but the more support landlords receive from brokers and lenders now, the easier it will be to navigate.
“Encouragingly, awareness appears high among landlords so many will be thinking about what changes may need to be done already.”
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Unfortunately generalisations made by Aldermore in their statement that “around four in ten rental properties currently had an EPC rating of ‘D’ or lower” are floored and are certainly not relevant in many areas of the UK.
It is likely that those properties built after the introduction of cavity walled constructions – which I would suggest originated and have replaced many of the older solid stone-walled properties in the more affluent areas of the UK – will be at or around the EPC rating of “C” providing other facets such as modern boilers, DG windows and decent levels of insulation are provided.
However, for the less affluent areas of the UK, where the vast stock of older solid stone walled properties are still in use the works involved to achieve an EPC rating of “C” or above is far more difficult and more expensive to achieve regardless of whether such properties have modern boilers, DG windows, high levels of insulation etc.
So, it is completely incorrect for legislators and “others” to present a “one size fits” approach to this scenario which will result in higher rents being charged in the least affluent areas of the UK.
Our property, which is rented, was built in July 1995 and was accorded an EPC grade”C” certificate on construction.
On purchase in July 1995 we were provided with the certificate & this certificate is still in our possession.
The property is also considered to be potentially a grade “B” following modifications.
Is it fair to assume that as we are in possession of an official grade “C” certificate no action will be required on our behalf when the upgrades come into force in 2028?
You can find more information about Energy Performance Certificates via the following link https://www.gov.uk/find-energy-certificate This could be the place to check if your rating is still valid.