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Landlords could face big penalties if their properties are not energy efficient with new minimum standards to be introduced.

Currently, all rental properties should have an EPC rating of E as a minimum. But that is set to change in 2025 with fines of up to £30,000 for those who don’t comply.

What is an EPC rating?

Essentially, it is an indicator of the energy efficiency of a building. The ratings, which run from A to G (with G being the least efficient) are colour coded, red to green.

Factors that decide the rating are the amount of energy used and the level of CO2 emissions.

How do I get an EPC rating?

This can be done with an Energy Assessment Survey carried out by a registered assessor. The cost varies so it is worth looking around.

The assessor will visit the property and produce a report indicating the current EPC rating with advice on how to improve it.

What are the Government’s plans?

From 2025, all properties with a new tenancy will have to have an EPC minimum of C. For existing tenancies, no matter how long they have been in place, the intention is to introduce this EPC minimum by 2028.

What does this mean for landlords?

It’s important for landlords that they make the necessary changes to bring their properties up to the necessary standard.

Research last year from Shawbrook indicated that around 25 per cent of landlords said their properties were rated at D or below with a similar number saying they were unaware of the planned changes.

Examples of improvements that can be made include: insulation; low energy lighting; solar PV panels; and smart heating controls. As some landlords may be looking at major work to improve the energy efficiency of properties, they are being advised to look at funding streams sooner rather than later.

Landlords who fail to comply with the requirements – and do not have a valid exemption – will face fines of up to £30,000.

If you are looking to access funds for improvements…