What the government U-turn on EPC regulations means for Landlords

Prime Minister Rishi Sunak has announced that policies to force Landlords to upgrade the energy efficiency of their properties will be scrapped. 

It comes as part of his U-turn on several eco-friendly initiatives that were set to come into force over the next few years.

Previous plans stated that all rental properties must have an EPC rating of at least band C from 2028 - the current regulations require a minimum rating of band E. 

The new rules would have forced thousands of Landlords nationwide to make substantial investments in enhancing their buy-to-let properties, including bolstering insulation, upgrading lighting to more energy-efficient options, adopting efficient heating systems or incorporating renewable energy sources.

Landlords will now be encouraged to make these changes wherever they can, but will not be required to do so by legislation. This is a welcome relief for the private rented sector, as these changes could have resulted in more Landlords disposing of properties and reducing the number of homes available to rent, which are already in short supply. There is hope that this news could even encourage new and existing Landlords to buy properties, increasing opportunities for residents looking to rent. 

As well as going back on the proposed EPC regulations, the Prime Minister has announced numerous other changes, including:

• Raising the Boiler Upgrade Grant to £7,500 in a bid to help households who want to replace their gas boilers with a heat pump or other low-carbon option
• Postponing the ban on installing oil and LPG boilers, as well as new coal heating systems, in properties which are not connected to the main gas network, until 2035. The revised plans mean homeowners/landlords will no longer have to invest approximately £10-15,000 in home upgrades within a three-year timeframe and will have more time to consider their investment.

We are here to support both Landlords and Tenants and guide them through their journey as much as possible. If you would like further advice on preparing for potential upcoming changes, get in touch with our Asset Management team on 0114 361 0140.