Landlords – are you prepared for the EPC ratings deadline?

From October 2030 there will be tighter EPC standards that come into effect for privately rented properties. Landlords really need to be thinking about starting to make changes sooner rather than later to ensure that their properties are compliant with the new regulations to avoid a fine.

What does this mean if you are currently a landlord of a privately rented property?

Under current legislation, a private rental property must have a minimum EPC rating of E. However, under the planned changes to legislation which are scheduled to come into effect in October 2030, all properties will be required to have a minimum EPC rating of C. This will apply to all tenancies whether they are new or existing.

There are some exceptions to this, where a landlord can register for a 10-year exemption, but only on the proviso that they have spent £10,000 per property to improve its energy efficiency and it has still not achieved a C rating. If the property is worth less than £100,000 the amount needed to be spent will be limited to 10% of the properties value before an exemption can be considered or granted. Any improvements made to its efficiency from October 2025 will count towards the £10,000 spend required.

The penalty for non-compliance will be up to £30,000 per property and, if there is a mortgage on the property, not only will you be unable to change lender when your existing fixed rate finishes, you will also be unable to effect a rate switch with your current provider, leaving you stranded on their Standard Variable Rate (typically 3-5% above the Bank of England Base Rate).

Support for Landlords for EPC improvements

If you are a landlord and have a private rental property with an EPC rating below C, it may be possible to obtain a grant to improve the energy efficiency of your properties.

This may depend on your Council Tax banding or postcode. Some of the funding initiatives can be applied for by the tenants themselves especially if they are on means-tested or certain other benefits.

Examples of some of the grants available are:

Boiler Upgrade Scheme – a grant of £7500 towards installing a heat pump for instance

Warm Homes: Local Grant – for tenants on a low income receiving certain benefits or in a specific area. The local council may be able to carry out improvements to boost the

energy efficiency of the property. The landlord may be required to contribute towards the costs depending on the circumstances.

The Great British Insulation Scheme – supports landlords to cover some of the costs if installing cavity wall and loft insulation.

How we can help

If you are a landlord and looking to get your rental properties ready for the changes to the energy efficiency standards in good time, then contact us and we will be able to help. If your property is currently mortgaged then it may be that when your next re-mortgage is due, additional funds can be raised to cover the costs for the improvements. There are also other options such as second charge loans or even bridging finance to cover the costs.

If you would like to discuss this further, then you can either complete the contact form on our website, contact Tim Ball by email at tim@southernmortgages.co.uk or call our office on 01702 746811.