As a landlord in the UK, understanding and adapting to evolving property legislation is paramount. The latest updates to the Energy Performance Certificate (EPC) regulations, specifically those set for 2030, represent a significant shift towards more energy-efficient rental properties. At Greater London Properties, we believe in keeping our landlords fully informed and supported, ensuring you can navigate these changes with confidence and maintain compliance.

What Are the Key EPC 2030 Changes?

The primary objective of the EPC 2030 regulations is to improve the energy efficiency of rental homes across England and Wales. The most significant change mandates that all private rented properties must achieve an EPC rating of C or above by 1 October 2030. This is a single deadline for all tenancies, both new and existing.

These energy efficiency regulations are not just about compliance; they also offer opportunities to enhance your property's appeal, reduce tenant utility bills, and potentially increase its market value.

Introducing the New Multi-Metric EPC Structure

A significant reform is the introduction of a new Multi-Metric EPC Structure, designed to provide a more comprehensive assessment of a property's energy performance. This new structure will include:

• Fabric Performance: Assessing the efficiency of the building's shell, including insulation and windows.
• Heating System Efficiency: Evaluating how effectively the heating system operates.
• Smart Readiness: Indicating the property's capacity for smart energy management technologies.
• Energy Cost Estimates: Providing more accurate projections of energy bills for tenants.

Key Timelines and Deadlines

Understanding the timeline for these changes is crucial for effective planning:

• Formal Implementation: Starts in 2026.
• Home Energy Model (HEM): Becomes compulsory from 1 October 2029. This new model will be used for all EPC assessments from this date.
• EPC Band C Requirement: All private rented properties must meet an EPC Band C or above by 1 October 2030.

Cost Cap: Landlords will be subject to a cost cap of £10,000 per property for energy efficiency improvements. There is a potential for a lower cap for properties valued under £100,000, which will be clarified closer to the implementation date.

Will I need a new EPC?

Properties that achieve an EPC C rating under the current system before 30 September 2029 will be considered compliant until their certificate expires (10 years from issue date), offering a degree of flexibility during the transition.

In practical terms, securing a compliant rating ahead of the deadline could provide landlords with longer-term certainty and avoid the need for immediate reassessment under the new system.

Current System vs. Post-Reform EPC

Why Are These Changes Being Introduced?

The UK government's commitment to achieving net-zero carbon emissions by 2050 is the driving force behind these stricter EPC requirements. The residential sector plays a crucial role in this national effort, and improving the energy performance of rental homes is a key strategy. These regulations aim to:

• Reduce Carbon Emissions: By making homes more energy-efficient, less energy is consumed, leading to a reduction in greenhouse gas emissions.
• Lower Energy Bills: Tenants in energy-efficient homes benefit from lower heating and electricity costs, a significant advantage in the current economic climate.
• Improve Living Standards: Better insulated and more efficient homes are warmer, healthier, and more comfortable for residents.
• Boost Property Value: Properties with higher EPC ratings are often more attractive to buyers and tenants, potentially commanding higher rents and sale prices.

Practical Steps For Landlords to Prepare:

• Reviewing current EPC ratings across the portfolio, particularly identifying properties rated D or below and checking certificate expiry dates.
• Commissioning updated assessments to understand the most cost-effective route to achieving the equivalent of Band C under the reformed framework.
• Prioritising fabric improvements such as loft and wall insulation, draught proofing and glazing upgrades to improve overall thermal efficiency.
• Upgrading inefficient heating systems, including older boilers, and installing modern heating controls where necessary.
• Considering smart energy technologies such as smart thermostats, solar PV or battery storage to enhance performance and tenant appeal.
• Budgeting strategically over the next few years, aligning improvements with refurbishments or void periods to manage costs effectively.
• Keeping clear documentation and reviewing exemptions where improvements are not technically or financially viable within the cost cap.

These updated EPC regulations are a significant step towards a more sustainable future for the UK property market. By taking proactive measures now, you can ensure your properties are compliant, attractive to tenants, and contribute positively to the environment.

Contact Greater London Properties today to discuss how we can help you prepare for the EPC 2030 deadline and beyond.

Your Home, Your Story, and your investment's future, are safe with us.

Warm Regards

Megan Cutforth, Lettings Director

📸 @greaterlondonproperties | @glpdulwich