Energy Efficiency Requirement Changes for Landlords



Reading time: 2 Minutes

While Prime Minister Rishi Sunak’s recent announcement about watering down the UK’s energy efficiency targets has been seen as controversial by some, what does it mean for business? Currently, according to the Domestic Minimum Energy Efficiency Standard (MEES) regulations, UK landlords are required to hold a minimum EPC rating of E on all their letting properties; an F or G rating means they cannot grant a tenancy to new or existing tenants.

 

This means that any properties falling under the lower rating need to be upgraded in terms of energy efficiency, to a maximum spend of £3500 per property. That can really add up if you have several properties in your portfolio. Exemptions can be granted for protected properties, but MEES is designed to improve the energy efficiency of the majority of private rentals across the UK, leading to a significant energy saving overall. 

Further amendments to these regulations meant that landlords had to bring all their stock up to an EPC rating of C by 2025 – however, Sunak’s announcement seems to suggest there will be an easing of these regulations, meaning that landlords won’t need to pay an additional amount in upgrades (estimated at £10,000 per property), but will instead simply be encouraged to upgrade their properties wherever possible. 

In addition to his announcement about EPC ratings, Sunak also stated that households will have more time to switch from gas boilers to heat pumps or other low carbon systems, with the phase-out now set to happen by 2035 instead of 2026. Sunak also announced an update to the Boiler Upgrade Scheme, which offers a grant to homeowners covering part of the cost of replacing gas boilers. The grant amount is set to increase to 50%, with up to £7500 per household becoming available. 

 

So, where does that leave you? As a tenant, it might be disappointing to hear that required upgrades now may no longer go ahead. Increased energy efficiency means more affordable energy bills, something that is becoming a political hot ticket item as many families struggle to make ends meet. Add in rising costs in rent, food and council tax, and it’s easy to see why this latest announcement will frustrate many people.

 

As a landlord, as long as your property now has an EPC rating of E or higher, it means that no further upgrades will be required by law, potentially saving you thousands of pounds. However, it could still be in your best interest to proceed with energy efficient changes to your property, especially if utility bills are included in your rental cost. And, while it is a landlord’s market at the moment, making your property as energy-efficient as it can be will make it more attractive to potential tenants, helping you to secure the right person for your place. Finally, with a general election looming, a Labour government might reverse Sunak’s decision, meaning you’ll still need to do the work. 

Whether or not you subscribe to the idea of human-led climate change, Sunak’s announcement now leaves homeowners with a choice. Spend the money now to upgrade your property, reduce your energy bills, and access grant funds. Or leave things as they are until after the general election and see how it all shakes out. While it’s good to have options, something to remember is that, when it comes to planets, we only have one.

 

Similar Posts

The people we've helped
  • We recently switched from another letting agency to James Laurence, as we found their team so warm and friendly and loved the local aspect of the agency. The team have absolutely exceeded our expectations, making the changeover feel so seamless and finding new tenants for our apartment at really short notice. Lotti could not have been more wonderful to work with, going completely above and beyond to ensure our tenants could move in just before Christmas. We felt an immediate affinity with her and have so appreciated her attention to detail, quick thinking and creativity. She has made us feel so at ease, supported and like our property is in the safest of hands. Charlotte and Melissa have also been so helpful and lovely to deal with during the process. Having worked with several other agencies in Birmingham, I cannot recommend James Laurence highly enough. Look no further, they are the best!

    Julia Collins Andreu Avatar Julia Collins
    28 December 2022
  • The team at James Laurence was very helpful when I tried to find an apartment in Birmingham. I was in contact with a different letting agency but things fell through and they couldn't help me. A colleague of mine recommended James Laurence Lettings so I emailed them immediately since I was was moving from Sweden and the move would take place in less than a week. The team at James Laurence responded within 5 minutes and managed to offer me a few different apartment-options. Things proceeded quickly and smoothly and just a few days later I had they keys to the apartment. James Laurence helped me every step of the way and went above and beyond to accommodate my requests. The only minor negative thing I can say is that the interntal communication could be improved a tiny bit. I received slightly different information depending on who I was speaking with at the time. When I said I received different information earlier the person I spoke to said she would talk to her colleagues and then get in contact with me later with the "correct" information which she did and the issue got solved very quick.

    Elias Avatar Elias
    15 October 2022
  • Our experience with James Laurence Estate Agents was absolutely fantastic! Melissa Wilson made the application and referencing process smooth and easy with excellent communication. Everyone we spoke with from the office was kind, helpful, and welcoming. To top it all off, the loft we moved into was even better than the pictures! We are thrilled with our new home and we would absolutely recommend James Laurence to anyone looking for a place to live!

    Dominic James Avatar Dominic James
    2 October 2022
  • I have been very impressed with James Laurence, who have recently sold my property. Having previously had a poor experience with Purple Bricks, I instructed James Laurence to help sell my property. I have worked with Henry throughout the whole process and have found him to be very professional and knowledgeable as well as being efficient. It can't be stressed enough how important this is to have an estate agent that responds quickly, negotiates well and truly understands the market (especially during uncertain times like recently with the cover pandemic). I have briefly worked with Caroline and some of the other team members who also seem to be very efficient and friendly. Thanks again to James Laurence who I would fully recommend to anyone looking to Buy/Sell in Birmingham.

    David Jolly Avatar David Jolly
    16 June 2022
  • I recently sold my property with James Laurence, and the overall experience was great. They demonstrated a good knowledge of the Birmingham property market when discussing sales strategy, marketing and pricing (more than I was expecting) towards the beginning of my experience with them. This showed when we achieved 2 asking price offers within the first couple days of showings. Once an offer was accepted, their support did not stop there, Caroline (Sales Progression) did a fantastic job at liaising between myself and the buyers side, helping to progress items and remove any potential blockers. I would fully recommend James Laurence to anyone looking to Buy/Sell in Birmingham.

    Jack Darby Avatar Jack Darby
    20 May 2022