What do the changes in EPC regulations mean for Landlords in Lancaster?
Last week we heard the news that the proposed energy efficiency targets for households, including rental properties, were to be scrapped.
Existing and ongoing EPC regulations
From 1 April 2018, for new tenancies, and 1 April 2020 for existing tenancies, the Government introduced MEES (Minimum Energy Efficiency Standards) which stated that rented properties (in England & Wales) must meet a minimum of an E rating in order to be rented.
There’s a maximum cost cap with Landlords not being required to pay more than £3500 per property including vat & outside funding, such as grants. If after this investment for improvements the property still does not meet the minimum E rating, Landlords can register an exemption.
Since the further consultation in 2020 with proposals of minimum ratings required to be a C, this would have forced many Landlords to make expensive upgrades in a 2 year period, with many still not achieving the minimum standards.
Impact on Landlords and rented properties in Lancaster
In our historic city of Lancaster, like many other towns & cities up and down the country, a large number of homes simply wouldn’t meet the required standards without a disproportionate amount of investment, leading to a much higher number of properties registering an exemption.
During the last few years as the proposals were looming, my advice to Landlords has been to make practical improvements as and where necessary and not purely based on achieving a C rated EPC.
Further, not to be forced into selling their buy to let properties because it would be impossible to reach that rating (similarly my advice to Landlords remains not to sell your rental property in Lancaster due to the Renters Reform Bill proposal) advice that many Lancaster Landlords are now glad they took, albeit possibly short lived if there is a change in Government resurrecting these proposals or similar.
That doesn’t of course mean that ways to make a home more energy efficient can be ignored as the risk of providing a property that is vastly expensive to heat could be extremely costly to a Landlord.
Homeowner or tenant, no one wants to spend more on their energy bills than they need to.
EPC advice for Lancaster Landlords
Where practical, applicable and cost effective, Landlords in Lancaster should be, and are, following guidelines and recommendations within their financial remit and capabilities.
Having the deadline removed will provide welcome relief for many who were feeling overwhelmed by the timeline.
There’s a maximum cost cap with Landlords not being required to pay more than £3500 per property including vat & outside funding, such as grants. If after this investment for improvements the property still does not meet the minimum E rating, Landlords can register an exemption.
Since the further consultation in 2020 with proposals of minimum ratings required to be a C, this would have forced many Landlords to make expensive upgrades in a 2 year period, with many still not achieving the minimum standards.
Advice to help make your rental property more energy efficient
If you are looking at making your property in Lancaster more energy efficient, are letting for the first time or in-between tenants, here are a few things to consider;
1) Energy saving lightbulbs are always a good starting point.
2) Insulation – whilst cavity wall insulation is no longer recommended or provided by many contractors, making sure the loft is satisfactorily insulated will be a huge help.
3) If you have a hot water cylinder, make sure the insulated jacket is well fitted and adequate enough to retain the heat for as long as possible.
4) Heating – having an efficient boiler is essential and remember to have it serviced regularly. If a boiler is over 10 years old it is likely to be more costly to run and repair when needed. Radiators should have individual thermostatic controls and the heating system should have a timing control function.
5) Windows should ideally be double glazed where permitted and draught free.
6) Doors to external spaces should have draught excluders fitted where necessary.
For any help or advice regarding letting or managing your rental property contact Property23 Letting Agents in Lancaster.
Tel: 01524 969778
Email: louise@property23.co.uk