This is the question facing all landlords given the proposed new Energy Performance Certificate (EPC) regulations. As part of its drive to achieve greater energy efficiency across all rental properties, the Government plans to make it compulsory for all rental properties to have a minimum EPC rating of C – from 2025 for newly rented properties and 2028 for all rental properties.
While this move supports the Government’s Net Zero 2050 target, it presents a challenge for many landlords, particularly those with large, complex property portfolios or older, less energy-efficient buildings such as Houses in Multiple Occupation (HMOs).
In 2018 a minimum EPC rating of E was introduced for privately rented properties. Now seeking to go further, the updated EPC proposals form part of a wider Bill currently making its way through Parliament.
According to the Government there are around 3.2 million rented properties with an EPC rating of D or below. Furthermore, over a third of rented properties were built before 1940* and will be unlikely to meet minimum standards. This highlights the energy efficiency issue but also the scale of change that is needed to meet the new regulations.
Start by knowing the current EPC ratings for your properties. In 2021, research by Shawbrook Bank revealed that over a quarter of landlords were unaware of the EPC rating of their properties. Armed with this information, the next step is to tackle what needs to change to bring your property up to standard. An accredited energy performance assessor will produce a report with recommendations and estimated costs for energy-saving improvements such as:
Identifying the most cost-effective energy-saving improvements to get the optimum return on your investment will be key. Once you know what is required you can put a plan in place to future-proof your property.
At Vincent Burch Mortgage Services we offer expert HMO mortgage advice with a wealth of knowledge and experience. We can discuss the proposed EPC changes with you, the impact they’ll have on your business and help you identify the most appropriate way to cover your costs. And that includes looking at bridging finance to help you fund the improvements you’ll need to make before you’ll be eligible to apply for one of the new green mortgages that offer favourable rates to those properties with A-C ratings.
Advice that’s tailored to your own bespoke situation.
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