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What do the new EPC Regulations mean for UK landlords?


The UK government has announced that in 2025, EPC Regulations will be changing. 

Once in force, the new regulations will require all new tenancies to have an EPC rating of Band C or above. UK landlords may be wondering what this means for them and the properties in their portfolio. Today, we’re going to quickly take a look at these new regulations in order to equip you with everything you need to know.

What is an EPC rating?

An EPC rating measures the energy efficiency of a property, working along a scale from A to G. Band A consists of the most efficient homes, whilst Band G demarcates the least efficient homes.

For homes that are sold or rented within the UK, it is a legal requirement for the property to have an EPC. Once a property has been issued with an EPC, it is valid for 10 years before it must be renewed.

What are the new regulations?

From 2025, all newly rented properties must comply with the new regulations, which require an EPC rating of C or above. As it currently stands, properties require a rating of E or above.

For existing tenancies, the new requirement will not apply until 2028.

EPC changes

What does this mean for landlords?

Landlords may be concerned that the new regulations will require them to fork out a considerable investment in order to get their properties up to standard.

To some extent, this concern is indeed valid. In order to improve the energy efficiency of a property from Band E to Band C, necessary and likely costly investments will have to be made. The government estimates that, on average, it could cost around £4,700 to make the necessary improvements.

Landlords with older properties should be conscious that greater costs may be incurred, as old properties will require more work to bring them up to standard and are less energy efficient compared to newer properties.

However, it would be inaccurate to say that the new regulations will be a disadvantage to landlords entirely. Investment in the energy efficiency of properties will, of course, raise the value of those properties. An increase in the value of the property naturally incurs an increase in rent.

So, over time the costs could certainly be recuperated by landlords. When the time comes to sell the property, it will also have gained value as a result of the improvements.

It is important to bear in mind that once the new regulations fall into place in 2025, landlords who do not have a compliant EPC could be fined up to £30,000.

Are you a UK landlord looking for help and advice with your finances? Get in touch with one of our fantastic advisors today.