The journey to meeting the UK government’s proposed EPC ‘C’ targets is well underway for landlords, but there’s still plenty of work to do. A recent survey by Dataloft by PriceHubble reveals insights into landlords’ readiness to comply with the new energy performance standards. With the government’s deadline of 2030 looming, now is the time for landlords to take decisive action to future-proof their properties and maintain compliance in the private rental sector (PRS).
The EPC ‘C’ Target: What Landlords Need to Know
The government’s Energy Performance Certificate (EPC) requirements mandate that all privately rented properties in England and Wales achieve a minimum EPC rating of ‘C’ by 2030. This initiative is part of a broader push to reduce carbon emissions and improve energy efficiency in the housing sector. While some landlords are already making strides towards compliance, many still have a significant way to go.
According to the latest research, over two-thirds (67%) of landlords currently own at least one property that does not meet the proposed EPC ‘C’ standard. These figures highlight the scale of the challenge and underline the importance of taking proactive steps to address energy inefficiencies.
High Awareness, Limited Understanding
Encouragingly, awareness of the new requirements is high among landlords. A substantial 92% of respondents reported that they have at least some knowledge of the upcoming EPC changes. However, there is a gap between general awareness and detailed understanding. Only 67% of landlords claim to have a thorough grasp of what the new regulations entail and the specific measures needed to achieve compliance.
This knowledge gap could pose challenges for landlords as they attempt to navigate the complex landscape of energy efficiency upgrades. Without a clear understanding of the requirements, landlords may struggle to prioritise the most cost-effective improvements or access available funding and support.
Landlords Taking Action
The good news is that many landlords are already planning their next steps. The survey found that 42% of landlords intend to make the necessary improvements to bring their properties up to the required EPC standard. This proactive approach is essential, as properties that fail to meet the ‘C’ rating may face restrictions on being let in the future. Non-compliance could result in financial penalties, reduced marketability, and the loss of income from void periods.
For landlords who have not yet started, now is the perfect time to act. Waiting until the last minute could lead to increased costs, a shortage of skilled tradespeople, and unnecessary stress. By planning ahead, landlords can spread the cost of upgrades over time and take advantage of available grants and incentives.
Key Upgrades to Consider
Improving a property’s EPC rating typically involves a combination of measures to enhance energy efficiency. Some common upgrades include:
- Insulation: Installing or improving loft and cavity wall insulation can significantly reduce heat loss and improve a property’s energy efficiency.
- Double Glazing: Replacing single-glazed windows with energy-efficient double glazing can help to retain heat and reduce energy bills.
- Efficient Heating Systems: Upgrading to a modern, energy-efficient boiler or installing a heat pump can make a substantial difference.
- Renewable Energy: Installing solar panels or other renewable energy solutions can boost a property’s energy performance while reducing carbon emissions.
The Benefits of Compliance
While achieving an EPC ‘C’ rating may require investment, the benefits are substantial. Properties with better energy efficiency are increasingly attractive to tenants, who are becoming more conscious of energy costs and environmental impact. Higher EPC ratings can also increase property value, reduce void periods, and lower maintenance costs in the long run.
Energy-efficient properties are more resilient to future regulatory changes, providing landlords with greater peace of mind and financial security. Investing in compliance now can safeguard rental income and ensure long-term success in a competitive market.
Support and Resources for Landlords
Landlords don’t have to navigate this journey alone. Various resources and funding options are available to support energy efficiency improvements, including:
- Government Grants: Schemes such as the Boiler Upgrade Scheme (BUS) and Eco 4 scheme can help cover the cost of upgrades.
- Green Finance: Many lenders offer green mortgages and loans specifically designed to fund energy efficiency improvements.
- Professional Advice: Engaging with qualified energy assessors and contractors can help landlords identify the most effective upgrades for their properties.
Time to Act: Prepare for 2030
The countdown to the EPC ‘C’ deadline has begun, and landlords must act now to ensure their properties comply with the new standards. Start by assessing your portfolio’s current EPC ratings and identifying properties that need improvement. Seek professional advice, explore funding options, and create a plan to make the necessary upgrades.
At Northwood, we understand the challenges landlords face and are here to help. Our team of property experts can provide tailored advice and support to help you meet EPC targets and optimise your rental portfolio. Don’t wait until it’s too late – contact us today to discuss how we can assist you in achieving compliance and maximising your investment.