Private landlords in England and Wales have been praised for being one step ahead of the government’s energy efficiency certificate (EPC) rules after an official report revealed that the median EPC achieved by all properties within the sector is a band D.

For a property to be rented legally, a landlord or letting agent must obtain an EPC for a property that’s a Band E or above.

But there are Government proposals on the table for all rented properties to reach a Band C by December 2025 for new tenancies and 2028 for existing ones.

The latest report on progress by the department of housing shows that in terms of median EPC band, flats and maisonettes have already reached a band C, while terraces and semis have much further to go, while detached houses are the least energy efficient.

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“It is…good to see letting agents and landlords meeting the requirements and adhering to the rules – everyone wants to see rented property that is safe, secure and warm,” says Timothy Douglas, Policy Manager at Propertymark.

“But the UK Government’s latest proposals for EPC band C presents a much tougher challenge for many properties across the country.

“It is of no surprise that social rented dwellings are more energy efficient because the social rented sector has received significantly more funding to improve energy efficiency than the private rented sector, despite being the smallest housing tenure in England.

“With the wide range of property types in the private rented sector and proposals for a £10,000 cost cap, landlords across the country are being presented with financial and practical challenges, which if not tackled, could result in a reduction in supply and landlords exiting the market.”

Read the DLUHC official report in full.

12 COMMENTS

  1. Most properties, decently maintained, can get to a D. Asking LLs to get to a C is a different matter and without Govt support and a reform of EPC assessments it is not going to happen in a lot of PRS properties. As it stands I will be selling 7 of 11 properties. If that is reflected across the PRS there will be a lot of people. looking for a new home in a dwindling market. When will the powers that be recognise this folly?

    • Living in a band D property isn’t a bad thing, however, it will be too expensive for me to upgrade my band D properties so I’ll have to sell them. I’m sure my tenants would rather live in a band D property than have nowhere else to live.

    • I read up extensively on EPC rules etc over a decade ago… The writing was on the wall then so I sold off all “Difficult” properties and re-invested in band C only, as a result I have just one Band D a modern flat that with a few tweaks will move to EPC C which is scheduled (For tax reasons) to be done next summer.

      During that process I worked with my best tenants even moving a couple of them out of “Difficult” properties into the C rated ones (At my own expense)… As a result almost all of my tenants are happy, will not be moving unless their circumstances change and therefore I effectively have zero properties “To let” to anyone… UC, Dog lovers, non-payers or anyone else for that matter…

      I’m sure Shelter, Gen rent etc will step in and help out those that are increasingly locked out of the PRS.

      English govt should look to Scotland where letting to students has effectively been closed do to legislative changes implemented by the Scottish Govt which was recently reported in landlord zone and this BBC article

      https://www.bbc.co.uk/news/uk-scotland-glasgow-west-58822372

  2. Recent EPC with recommendations

    Typical period terrace, room roofs well insulated, double glazing, original solid 9” walls and older combo boiler

    Period property has ornate cornice & skirtings, plus externally ornate stonework around windows so not going to add wall insulation unless someone holds a “gun” to my head 😂

    Question….does this really make sense on the points front:-

    • Wall insulation – 8 points
    • Floor insulation – 2 points
    • Wall thermostats 2 points
    • New condensing boiler 3 points

    Surely a joke that you get 2 points for a wall thermostat when the existing CH system has TRv’s to all rads.

    Wall stat often a waste of time and often left on full as in a hallway as colder than the rest of the house.

    Then only 3 points for taking out a 20+ year old combi & fitting a high performance modern condensing which is sooooo much more efficient??.

    The new EPC assessment has got to be scewed towards “condemning” any form of gas boiler??

    I strongly suspect they have done this to try to push their 5K heat pump plan…unfortunately I believe they are often not suitable for leaky period properties when it’s actually cold outside!

    Someone tell me I’ve got the wrong end of the stick…or is the EPC, RSAp calculation a total joke? 🙆😂

    • £5k heat pump? – you’re clearly buying in to their nonsense already. Try nearer £7k-£10k by the time you’ve done everything else needed when fitting one.

      • an ASHP installation for much under £15K will likely be a failure. You may be able to buy an ASHP for 5K but not installed. And will need a heat pump compatible hot water cylinder, a buffer cylinder and the space to fit all this, installed by a properly trained heat pump engineer who know how to properly specify the system. Then the radiator system to re design andinstall – assuming the existing ch pipework is up to the job. Micobore is a no no! It aint going to happen any time soon!

  3. I am selling all d ratings. Decent tenants but no way can I afford insulation at the level the Epc wants. Even the Epc assessor said it’s not worth it. I’ll sell with tenants in situ. Saves them the need to move though in practical terms there is no where for them do. Plus I’ll save on paying HMRC so much in CGT. Just hoping there are enough new landlords willing to buy.

    • Think you are being a bit optimistic.

      Only an idiot LL would invest in a property with existing tenants where less than C status.

      You need to evict existing tenants to maximise sale value.

      Sod existing tenants.

      You need to cash out for maximum achievable value

      You ain’t a charity!

      You will need to source a dopey mug FTB to buy your dud properties.

      I wouldn’t buy any of your properties unless a massive price reduction of about £40000 to leave sufficient resources to bring up to C status which won’t enhance the property value at all.

      If you gave to sell so much below MV be interesting to see whether HMRC believe value degraded so much by EPC issues.

      So you could have to sed far cheaper but HMRC won’t believe this is the correct price

      So you could find yourself with a CGT bill without sufficient sale proceeds to pay it.

      My advice is to sell up your dud D status properties double quick before the general populace understand that anything less than C is a dud

      As yet this general realisation hasn’t occurred amongst most of the thick public.

      But if lenders start preventing mortgages fir less than C status.
      The property market will collapse.

      There are currently 2 million worthless flats and 680000 dud letting properties which can only achieve C status with about £30000 investment.
      That is if you can even source contractors to do the work.

      In a nutshell you need to sell up like yesterday!

  4. Those LL with EPC C status letting properties are sitting pretty.

    They will find their properties become much in demand as all the dud less than C status letting properties are sold off.

    A C status LL will be able to jack up rents to increasingly desperate tenants who won’t have the luxury of choice.

    It will be more a case of sourcing a letting property at any price.

    There will be sealed rental bids.

    There will be millions of homeless tenants.

    That won’t be the fault of LL though.

    It is Govt which will cause a mass shortage of rental properties.

    But this is what Govt wants………………..fewer letting properties at least those owned by small LL.

    However no way will corporate LL be able to meet the loss in supply as small LL sell up.

    Many LL forced to sell up could well find themselves in afar financially resilient position by reducing properties and leverage.

    It remains to be seen whether causing mass tenant homelessness will be electorally advantageous.

    Very few existing tenants will buy a LL property.

    There is lots of supply but few tenants are buying.

    Bearing in mind most of the dud letting properties are in the Red Wall seats making millions of tenants homeless isn’t a very politically expedient thing to do.

    The Tories are being very politically naive.

    They are still pandering to GR who wouldn’t vote Tory even if each of them was given a house by the Tories

    The Tories need to forget pandering to GR.

    That leads to political destruction.

    Appealing to Red Wall voters is what it is all about.

    That means appealing to tenants.

    That means NOT forcing LL out of business

    However such is the incompetence of the Tories we could we could well see disgruntled Red Wall tenant voters returning to the Labour fold.

    If that happens and Labour get in it is game over for the PRS.

    What Labour would do is far worse than what the Tories have achieved and planned.

    • “Those LL with EPC C status letting properties are sitting pretty. They will find their properties become much in demand as all the dud less than C status letting properties are sold off. A C status LL will be able to jack up rents to increasingly desperate tenants who won’t have the luxury of choice”

      Totally agree… I read up a lot on EPC’s 10 years ago and the writing was on the wall even then… I sold all “Difficult” properties and re-invested in C rated only.

      I’m just waiting for the second gold rush in the PRS as the market shrinks…

      Rents are already rising rapidly and once the new rules come into force then the sky’s the limit for the remaining landlords who will be able to pick the very best tenants and charge rents at a decent level.

      Not only will rents be rising rapidly in a year or two but C rated properties will also see a significant price uplift as remaining investors will have no choice but to cough up if they want to remain in the PRS.

      Only a fool would attempt to upgrade a bog standard terrace, buying modern well insulated properties are the only sensible investment vehicle.

  5. yes totally agree. 4 idiot landlords have already bought 5. Lol. Fortunately they were easy to get rid off. Next 2 are going to be more difficult but I will see. As to selling at a loss then any offer is fair offer. Just consider the company’s offering to buy you portfolios in 7 days at 75% of value. When I raised your very question on the issue of undervalued sales they informed me that that is what it’s worth and HMRC would have no option but to accept it. Interesting though as I had your same thoughts. But sell and quick is my aim. To serve notice will at best take 2 months plus them pay out services charges whilst empty in the hope of still selling closer to market rate.

    • Lucky old you.

      Fortunate that there are idiot LL out there!!!
      Well done in finding some mugs to buy your dud D status letting properties.

      I do wonder at how thick some LL are.

      They don’t seem to carry out any sensible DD.

      Great that there are so many thick LL that we shrewd ones can offload our duds onto.

      Mind you I have some flats which are C status and have EWS1 forms.

      I would have thought they would have gone very quickly.

      But only one sold.

      Perhaps the others willl go in the New Year.

      All I knowi is I want to beout of the game by 2022.

      A bizarre situation when there are new build 2 bed flats going for £60000 more than mine and in a far worse location!!

      Most of them have been sold as well!!!

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