The UK Government has stated that, by the end of 2025, all new rental properties will require an EPC rating of band C or above. However, currently only 51% of all rental properties, let out over the last 12 months, had an EPC of band C or above. If your property is currently rated a band D or E, it would make sense to start thinking about improving your property’s EPC rating.
What is an EPC?
EPC stands for Energy Performance Certificate and all properties must have a valid one (they expire after 10 years from issue) before being rented out or sold. The EPC report grades your property (A-G) according to its energy efficiency which gives potential renters a rough idea of how much their energy bills are likely to be and, usefully, offers recommendations to property owners on measures that, if carried out, are likely to improve the property’s energy performance certificate rating.
What are the benefits to Landlords of improving your property’s energy efficiency?
- An energy efficient property, particularly in the current economic climate, is a major attraction to potential tenants. High energy bills have signalled the end of many tenancies as tenants struggle to afford to heat their home. An energy efficient property therefore increases its desirability and increases likelihood of it being occupied more of the time.
- Tenants who have energy efficient homes are happier as they have a warm home and are not paying extortionately high energy bills. This leaves them with more disposable income on a monthly basis (and thereby decreases risk of rent arrears.)
- Energy efficient homes usually mean that problems such as freezing pipes, mould, damp etc are less likely and that should mean lower maintenance and call-out fees.
Ways to improve your property’s energy efficiency
- Double-check the light bulbs in lamps and fixtures are LED. They are more energy efficient that traditional incandescent light bulbs and could be a cheap way to improve your EPC rating.
- Check your loft insulation and cavity wall insulation. Adequate insulation will help prevent and reduce the amount of energy that can escape through the roof and through the walls and is a relatively simple, effective and cheap measure to implement. Importantly however, it will have a significant impact on your EPC rating.
- Replace your old, inefficient boiler. Your home’s central heating system represents the core of your home’s energy efficiency so replacing an old boiler with, for example, a new A-rated condensing boiler with a smart programmer and thermostat, will significantly improve your property’s energy rating.
- Invest in double-glazed windows. Old, single-glazed windows can be responsible for a huge amount of heat loss so it may be a good idea to install double-glazing and this will give your EPC rating a good boost.
Check the EPC rating of your property via the Government EPC checker tool: https://www.gov.uk/find-energy-certificate
