Government Consultation – 2025 and beyond.
As many of you will know, an EPC (or Energy Performance Certificate) is a Certificate that demonstrates how energy efficient your property is. The Certificate will give your property an alphabetised rating, which is a review of a property’s energy efficiency.
The PRS (Private Rental Sector) Regulations set a minimum energy performance standard of EPC Band E for domestic private rented property. The requirement that a property must be EPC Band E has applied since 1 April 2018, to properties let on new tenancies (including renewals), and since 1 April 2020 it has applied to all privately rented properties (both new and existing tenancies).
All rental properties must be band E, as of 1 April 2018.
The PRS represents 20% of the UK housing stock (4.8 million households) and the Government are currently in consultation regarding raising the energy performance standard to Energy Performance Certificate (EPC) energy efficiency rating (EER) Band C, with a phased trajectory for achieving the improvements for new tenancies from 2025 and all tenancies from 2028. In addition, the proposal is to increase the maximum investment amount, per-property spend to a £10,000 cap (currently £3,500) and by adopting a ‘fabric first’ approach to energy performance improvements.
The timeline for the consultation process is:
January 2021 – Consultation closes
Spring 2021 – Response
Autumn 2021 – Lay regulations to amend the PRS regulations
2025 – Amendments to regulations come into force
How does the rating system work?
To give some context to the rating system, an E ranges from 39-54 points and a C ranges from 69 -80 points, so there is going to be a big difference between bringing a low E up to a C in terms of spend.
We are looking at our portfolio currently and having conversations with the Landlords, for whom we manage, in order to do the same, so that we can put timely plans in place now.
These proposed changes will typically affect large numbers of certain types of properties and in particular student stock. Is this your portfolio and, if so, do you have a plan in place?
If you are worried about your EPC rating and have a property that you think will fail an EPC in 2025 or would like to know more about the system, contact us on 0117 440 6789 or email benedict@kpa.co.uk
