New Energy Performance Standards for Rental Properties

The government has set it sights on the energy performance on the rental market, with properties needing to achieve a minimum EPC rating of “C” by 2025 for new tenancies.

All properties including existing tenancies will need to achieve an EPC rating of “C” by 2028.

The current legislation in England and Wales require rental properties to meet an EPC rating of “E” or better, meaning that landlords who own older properties will need to make improvements in order to comply with the new regulations.

A recent poll of 750 landlords conducted by The Mortgage Works found that 35% are not confident that they will be able to achieve the higher energy rating standards. Energy performance can be improved by upgrading the insulation, windows, lighting, hot water and heating systems, to name a few, all of which can be a substantial cost to the property owner.

61% of landlords surveyed need to spend money in order to bring their properties up to a “C” rating, with 14% needing to spend their entire annual rental income and just 17% believe they won’t need to spend anything at all.

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New Build Investment Property with High Energy Ratings
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84.4% of new build properties have an Energy Performance Certificate (EPC) rating of an A or B, compared with 2.2% of existing buildings according to recent research.

Buying new build property also provides other excellent advantages to buy-to-let property investors, with the ability to secure the best units in a new development as opposed to whatever is available on the market at that time, below market value pricing, developer incentives to reduce the cost of buying your rental property and benefit from price growth without having to manage the property if the development is under construction.

Speak with one our advisors today by completing our quick and easy 60-second questionnaire and we will be in contact with a variety of options that meet your investment criteria.

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