Changes to the EPC requirements:
The EPC requirement is to remain as a minimum rating of E for the foreseeable future.
The initial proposals required all new tenancies to have an EPC rating of C by 2025 and all existing tenancies to comply by 2028. However, the government have now decided not to proceed with the proposals, but rather, to encourage Landlords to upgrade energy efficiency where possible.
As part of the governments “green initiative/ review” designed to meet net zero targets, further key changes to the housing sector have also been announced as follows:
a) The Boiler Upgrade Scheme grants will be increased to £7,500
b) The ban on the installation of oil and Liquid Petroleum Gas (LPG) boilers and new coal heating for off-grid homes has also been delayed from 2026 until 2035
c)There will be an exemption introduced for households who struggle to switch to heat pumps from 2035, which is expected to cover around a fifth of homes.
Impact on Landlords:
Whilst it would appear many Landlords have already taken steps to make changes to their properties to improve energy efficiency, this announcement, in practical terms, means Landlords, at least for now, do not need to take steps to ensure their property adheres to an EPC rating of C.
That said, the government have stated they will be launching a consultation on Minimum Energy Efficiency Standards (MEES) in the social housing sector in early 2024, and therefore there is no guarantee that the changes will not be re-introduced later.
To speak to our specialist Landlord support team, please call 0800 118 1500 or email alexandrajordan@talbotslaw.co.uk