After the last government scrapped the new Energy Performance Certificate (EPC) plans, we wondered how long it would be until the new government brought it back. EPC changes will be coming into effect as previously anticipated, meaning substantial increased refurbishment costs for many existing landlords. Those with new build properties however, won’t lose any sleep as their properties will already be up to standard…
Quick Tip: The best way to capitalise and take advantage of these new EPC changes is by buying new build property, along with the rest of the advantages they bring such as warranties, amenities and increased tenant demand. By buying off-plan you’re likely to get below market value opportunities and your pick of the best units.
Scroll down to the bottom of the article to download our FREE guide to Off-Plan investing.
Energy Secretary Ed Miliband has pledged to hold a consultation on raising the minimum energy efficiency standards for private and social rented homes by 2030. The Department for Energy Security and Net Zero has confirmed that the consultation will take place “by the end of the year.”
Currently, private rented homes can be let if they meet an EPC rating of an E, while social rented homes have no minimum energy efficiency requirement. The government’s upcoming consultation will explore proposals for both private and social rented properties to reach an EPC rating of C or equivalent by 2030.
Commenting on the plans, Chris Norris, Policy Director for the National Residential Landlords Association (NRLA), stated: “The NRLA supports making all rented properties as energy-efficient as possible. However, the government must outline a clear and comprehensive strategy, recognising that many properties in the sector are some of the oldest and most difficult to improve within the UK housing stock.”
Norris emphasised the need for a clear timeline on what will be required and when, as well as ensuring enough skilled tradespeople are available to carry out the necessary work. He also highlighted the Committee on Fuel Poverty’s recommendation for a financial support package, noting that the private rented sector currently lacks a dedicated funding scheme to support energy efficiency upgrades.
According to government data, nearly 45% of private rented homes in England had an EPC rating of C or better in 2022, more than twice the percentage in 2012. However, about a third of private rented homes were built before 1919, making them some of the most challenging to upgrade.
Research indicates that by 2030, the UK could face a shortage of 250,000 tradespeople. The Committee on Fuel Poverty has suggested that landlords could be better supported with tax incentives for improvements, as well as loans or grants for those operating in low-profit, low-rent areas.
With the concerns many landlords may have, it is clear that a great way to future proof your investment from the ever changing government legislation is to buy off-plan. Scroll down just a little bit further to download our FREE guide to off-plan investing.
