Starting in 2025, new regulations are set to take effect in the UK that will require all rental properties to meet a minimum Energy Performance Certificate (EPC) rating of C or higher for new tenancies. This change is part of the government's efforts to improve energy efficiency and reduce carbon emissions in residential and commercial properties. Here’s what you need to know about the EPC minimum rating requirements for 2025 and how they will impact landlords and property owners.
An Energy Performance Certificate (EPC) is a document that provides information on a property’s energy efficiency and typical energy costs. It rates the property on a scale from A (most efficient) to G (least efficient) and includes recommendations for improving energy efficiency.
The EPC is required whenever a property is built, sold, or rented, and the certificate is valid for 10 years.
As part of the UK government’s commitment to reducing carbon emissions, the minimum required EPC rating for rented properties will rise from E (current standard) to C by 2025 for new tenancies and by 2028 for all existing tenancies.
New Tenancies from 2025: All new rental properties must have an EPC rating of C or higher from 2025 onward. This means landlords will need to ensure their properties meet this standard before renting to new tenants.
Existing Tenancies by 2028: For ongoing tenancies, landlords must upgrade properties to meet the EPC rating of C by 2028, giving landlords more time to make the necessary improvements.
1. Property Upgrades: Landlords with properties currently rated D or lower will need to consider making energy-efficient improvements to meet the new standards. Common improvements include upgrading insulation, installing energy-efficient windows, upgrading heating systems, and using renewable energy sources.
2. Penalties for Non-Compliance: Landlords who fail to comply with the new EPC regulations could face penalties, including fines. Enforcement will be carried out by local authorities, who can impose fines of up to £30,000 for non-compliance.
3. Funding and Grants: To help landlords make the necessary upgrades, various government grants and funding schemes may be available, such as the Green Homes Grant or other local initiatives that support energy-efficient improvements.
If your property currently falls below the EPC rating of C, here are some common upgrades to consider:
With the upcoming EPC minimum rating requirements of C by 2025 for new tenancies, landlords should start planning and implementing energy efficiency upgrades now to avoid potential fines and to improve property desirability in the rental market. Contacting professionals for an EPC assessment and following recommended improvements can help ensure compliance and long-term savings on energy costs.
If you’re a landlord looking for guidance on meeting EPC standards or need assistance with property management, Fraser Bond’s experts can provide tailored advice to ensure your property remains compliant and competitive in the market.
