Will you need to increase your rental dwelling’s EPC rating to C now Labour are in power?

Last September, Rishi Sunak announced that he was scrapping the planned introduction of a minimum C rating on the EPC for rented dwellings in England and Wales, which was expected to be phased in from the end of 2025.

But now, with a change of government, how likely is it that landlords will have to increase their dwellings’ rating in the near future?

The reality is that Labour has long championed a variety of measures to help the UK achieve Net Zero by 2050, and have pledged to have clean energy by 2030. As part of their Warm Homes Plan, into which they will invest £6.6 billion over the next parliament, they have said they “will ensure homes in the private rented sector meet minimum energy efficiency standards by 2030”. This strongly suggests they will resurrect previous plans for all rented homes to have a minimum C rating either before or by that date.

The last suggested deadlines were 31^st December 2025 for new and renewed occupation contracts and 31^st December 2028 for existing occupation contracts. However, we believe it’s likely the 2025 deadline would be scrapped, as there isn’t realistically enough time for affected landlords to make the necessary upgrades. So, it’s possible they may follow a similar route to Scotland, where the Government scrapped their original 2025 deadline, and now all rented dwellings must simply meet minimum C by the end of 2028.

If your dwelling is currently rated D or E on the EPC, we’d recommend you start to focus on improving that as soon as possible, and don’t wait for legislation to be announced. Contract-holders are increasingly looking for energy efficient homes that have low-cost heating solutions, so the sooner you can make upgrades, the more attractive your dwelling will be when it’s time to re-let. And if current contract-holders can see you making changes that will reduce their bills and help them keep the dwelling warm, they will be more likely to stay there.

If you’re looking to buy your next dwelling to live in or let, check the property’s EPC, so you can estimate how much it would cost to bring it up to a rating of C or higher. It’s also important to discuss the rating with your mortgage broker, to find out how it could affect your buy-to-let financing. While there are currently preferential ‘green’ mortgages available for properties rated A and B, once legislation is passed that raises the minimum rating for legal lets to C, it may be harder to get a reasonable rate for a property rated D or E.

If you would like to discuss your particular dwelling in more detail, just get in touch with the lettings team in your local branch. They’ll be very happy to offer advice and help you ensure your rental stays both desirable and compliant.