Property Investors Blog

Minimum EPC ratings increase to band C for PRS after Government Consultation

It was announced recently that the Government have released a new consultation which proposes amending the energy efficiency regulations for the PRS (private rented properties) in England and Wales. The new proposal will raise the minimum EPC rating for rented property to band C. This proposal would also allow Councils to impose fines on private landlords of up to £30,000 for non-compliance.

The new policy focuses on 4 elements:

  • Raising the energy performance standard to Energy Performance Certificate (EPC) energy efficiency rating (EER) Band C
  • A phased trajectory for achieving the improvements for new tenancies from 2025 and all tenancies from 2028
  • Increasing the maximum investment amount, resulting in an average per-property spend of £4,700 under a £10,000 cap
  • Introducing a ‘fabric first’ approach to energy performance improvements

These proposed amendments plan to significantly improve the energy performance of private rented sector homes to help towards the following:

  • Deliver significant emission reductions, which will contribute to Carbon Budgets 4 and 5 and support a decarbonisation pathway to the Net Zero 2050 target
  • Decrease bills for low income and vulnerable tenants
  • Increase the quality, value and desirability of landlords’ assets
  • Reduce energy bills for tenants and ensure warmer homes
  • Support investment in high-quality jobs and skills in the domestic retrofit supply chain
  • Provide greater energy security through lower energy demand on the grid and reduced fule imports

The government are asking for responses by the 30th December via this link – https://beisgovuk.citizenspace.com/energy-efficiency/improving-energy-performance-privately-rented-home/

To find out more information and view the consultation document, click here.

If you want to speak to one of our experts about how this may affect you, contact our team today here.

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