What's happening with EPC ratings and minimum energy efficiency standards for rental properties?
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🌟🏠 What's happening with EPC ratings and minimum energy efficiency standards for rental properties? 🌿💡
Let's dive right in! 📣📅
Back in 2020, the government announced plans to increase the energy efficiency standards for the Private Rented Sector. The goal is for private rented properties to have an EPC rating of C or above by 2025 for new tenancies, and by 2028 for existing tenancies. 🏢💚
But the big question is, are landlords ready for these changes? Recent data shows promising signs! Since January 2019, there has been a 16% increase in properties with an EPC rating of C or higher. At the same time, the number of rental properties with EPC ratings D to G decreased by 11%. It seems that landlords are either making necessary upgrades or becoming more selective with their investments. 💪💼
61% of landlords now say they wouldn't invest in a property with a rating below C. This indicates a shift in prioritisation and an understanding of tenants' desire for higher energy efficiency. 🌱🌍
Now, you may be wondering if the new minimum standards will be included in the Decent Homes Standard. The proposals for applying the Decent Homes Standard to the private rented sector were outlined in the consultation on A Decent Homes Standard in the private rented sector. The House of Commons Committee report on Reforming the Private Rented Sector recommended incorporating MEES into the Decent Homes Standard's criteria. This would simplify the regulatory regime and ensure thermal comfort for tenants. 🏠🌡️
As of now, the Minimum Energy Efficiency Standard doesn't apply to the social housing sector, so there's no need for alignment in the Decent Homes Standard. 🏘️❌
So, when will these increased standards be formalised? We're still waiting for the response to the 2020 Energy Performance consultation, which will provide further details on the requirements. Energy minister Andrew Bowie recently mentioned that the first update this year will be a summary of responses. While there were reports that landlords would have until 2028 to meet the new energy efficiency requirements, no official announcement has been made to confirm this date. 🗓️🔍
Now, let's talk about what landlords and agents should be doing to prepare. The current government guidance for meeting the existing MEES rules suggests considering various upgrades, such as wall insulation, draught proofing, solar panels, and more. These upgrades come with average costs, which can help you plan your investments. 💰💡
Keep in mind that the government is expected to introduce a cap of £10,000 on the cost of upgrades, and landlords will be able to apply for an exemption if the works exceed this limit.
We'll continue to provide you with the latest information on this important topic.
Feel free to give me a call to discuss the above or anything Lettings.
Andy Brown
07585 913 564
andy.b@avocadopropertyagents.co.uk