EPC fines to skyrocket: How can landlords avoid a £30k penalty?

In 2025, landlords in the UK may be impacted by proposed EPC regulations aimed at improving the energy efficiency of properties. These regulations could necessitate significant and costly changes to properties.

What are the current energy regulations?

All domestic and commercial properties for rent need to have an Energy Performance Certificate (EPC).

This is a document that shows how efficient your property is in terms of its energy use.

The ratings range from “A” to the most efficient, with G being the least efficient.

Landlords only need to renew their certificates when they relet their property to a new tenant.

What are the new EPC regulations proposing?

The government has proposed that all newly rented properties will need an EPC of at least Band C from 31st December 2025.

Existing tenancies will have until 31st December 2028 to achieve this new target, but landlords will be fined if they do not comply with the regulations by then.

Fines for not having a valid EPC will increase from £5000 to £30,000.

How will this affect landlords?

As a landlord, you will be affected by these regulations if you own or manage a property in England and Wales.

The government estimates that around 3.2 million privately rented properties require work to meet the new standards. The average cost of meeting these targets is estimated at £10 per property, which equates to an overall cost of around £3 billion for landlords.

Landlords may find themselves with properties that cannot be let because they do not meet the required standards or have been taken off the market until improvements have been made.

What can you do to prepare for the proposed change?

If you are a landlord, it is important to understand the scale of these proposed changes.

The first step is to look at your properties’ current EPC certificate and see how many stars they have. If you have properties with fewer than 4 stars, this may be an opportunity for improvement.

Allow yourself time to plan the most effective and appropriate measures for your property. Protecting your investment by looking after your property and ensuring that it's well maintained will also help ensure compliance with new regulations when they come into force in 2025.

What are the benefits of meeting the EPC regulations?

• Save money on energy bills: A well-insulated property will save you money on your energy bills and make it more comfortable to live in.
• Increase the value of your property: The higher an EPC rating, the more likely you'll be able to sell or rent out your property at a high price. Buyers and tenants don't want to have to worry about high heating costs during winter months!

What are the different types of energy efficiency improvements?

There are a number of different types of energy efficiency improvements that can be made to your property, including:

• Insulating the walls and roof
• Installing double glazing
• Upgrading heating systems
• Installing energy efficient appliances.

What funding is available?

There are a number of different funding options available to landlords, including:

• Government grants
• Loans
• Tax relief and discounts.