Big EPC changes being proposed

The UK government has proposed significant changes to Energy Performance Certificate (EPC) requirements for landlords in England and Wales, aiming to enhance energy efficiency compliance and provide more accurate information to tenants and policymakers.

Key Proposed Changes

1. EPCs Required for Every New Tenancy:
   • Private landlords would need to obtain a new EPC each time they rent to a new tenant, replacing the current 10-year validity period.
   • This change aims to reflect recent upgrades or improvements in a property’s energy efficiency.
2. EPCs for HMOs (Houses in Multiple Occupation):
   • A new EPC would be required for the entire HMO every time a single room is rented out.
   • This closes a loophole in existing regulations where EPCs are only mandated when an entire property is rented.
3. Transition Period for HMO Landlords:
   • Landlords of HMOs will have a 24-month transitional period to comply with these requirements.
4. Continuous EPC Validity During Tenancy:
   • The government proposes ensuring that tenants in long-term agreements have access to a valid and up-to-date EPC throughout their tenancy, not just when the property is marketed.

Rationale for Changes

• For Tenants and Policymakers: Up-to-date EPCs will provide current energy performance information, helping tenants make informed decisions and aiding policymakers in tracking energy efficiency improvements.
• For Landlords: Frequent updates could capture property upgrades, improving desirability and compliance with standards like the Minimum Energy Efficiency Standards (MEES).

Impact on Landlords

• Costs: More frequent EPC requirements may lead to increased administrative costs for landlords.
• Benefits: Regular EPC updates could increase property appeal and ensure better compliance with energy efficiency policies.
• HMO Landlords: The requirement to obtain an EPC for individual room rentals ensures consistency across the private rented sector but may add pressure during turnover.

Broader Government Goals

• Energy Efficiency Commitment: Upgrade five million homes by the end of the current parliament to align with environmental targets.
• Addressing Long-Term Tenancies: Ensure tenants in both the Private Rented Sector (PRS) and Social Rented Sector (SRS) have valid EPCs, noting the average tenancy lengths of 4.3 years (PRS) and 12.2 years (SRS).

Feedback and Next Steps

The government is inviting responses to these proposals through a consultation open until 26 February 2024. Concerned landlords can find further details in the “Reforms to the Energy Performance of Buildings regime” document on the .gov website.