How the New EPC Standards Will Impact Property Managers
The UK government has announced a major policy update that will have significant implications for landlords and property professionals. In a bid to improve energy efficiency and cut tenant energy bills, rental properties in England and Wales will soon be required to meet higher Energy Performance Certificate (EPC) standards.
What’s Changing?
Currently, landlords must ensure their properties have a minimum EPC rating of E before they can be legally let. However, the government’s latest update confirms that all tenancies will require a minimum EPC rating of C by 2030.
This move aims to make homes warmer, reduce energy costs for tenants, and contribute to the UK’s net-zero targets.
What Does This Mean for Landlords and Property Managers?
This policy shift brings both challenges and opportunities. Here’s what landlords, property managers, and agents need to consider:
Significant Property Upgrades Needed
Meeting an EPC C rating will likely require substantial property improvements, such as:
- Loft and cavity wall insulation
- Energy-efficient windows and doors
- Heat pumps and low-carbon heating systems
- Smart meters and energy-efficient lighting
Financial Considerations
The government proposes a maximum spend cap of £15,000 per property for required upgrades, with a potential lower cap of £10,000 for lower-value rentals. Funding options such as the Boiler Upgrade Scheme and the Warm Homes Grant may help offset costs.
Non-Compliance Could Be Costly
Landlords who fail to meet the new requirements risk fines and enforcement action. As the deadline approaches, compliance will become increasingly scrutinised.
Increased Property Value and Tenant Demand
Properties with better energy efficiency ratings will be more attractive to tenants and buyers, potentially increasing rental yields and market value.
How Property Professionals Can Prepare
To stay ahead of the changes, landlords and property managers should:
- Conduct EPC assessments now to understand upgrade requirements.
- Budget and explore funding options to manage costs effectively.
- Monitor government updates for further clarifications on enforcement and support schemes.
- Educate tenants on the benefits of energy efficiency, enhancing their rental experience.
Need some help?
Managing EPC compliance, property upgrades, and financial planning across a portfolio can be complex. With Propman, you can track EPC ratings, plan maintenance schedules, and manage costs with ease—all in one place.