Performance Certificates (EPCs), is now a key factor in property investment. For landlords and investors, an understanding of EPC requirements is essential to stay compliant and protect the value of assets.
EPC Ratings: The Basics
EPCs grade properties on their energy efficiency, from A (most efficient) to G (least efficient). Since April 2023, properties in England and Wales must have a minimum EPC rating of E to be rented. This means the property’s efficiency is rated between 39–54%.
Looking ahead, the government plans to increase this requirement. By 2030, all rental properties will need a minimum rating of C. These changes aim to lower energy bills, reduce fuel consumption and support environmental goals.
Commercial Properties and MEES Regulations
For commercial properties, the Minimum Energy Efficiency Standards (MEES) Regulations introduced in April 2023 prohibit renting out buildings with an EPC rating below E. Yet, as of January 2024, over 19,000 commercial properties in the UK fail to meet this standard.
Future targets are even stricter. By 2027, commercial buildings must achieve a minimum rating of C, with a goal of B by 2030. While these properties can still be bought and sold, they cannot be rented unless they meet the minimum standards, which could significantly impact their market appeal.
Exemptions to EPC Requirements
Not all properties require a minimum EPC level. Exemptions include:
- Listed buildings where efficiency improvements could alter their character.
- Temporary buildings lasting less than two years.
- Small properties under 50 square meters.
- Holiday lets rented for less than four months a year.
Understanding these exemptions is crucial for property investors to plan capital expenditure effectively.
How to Improve EPC Ratings
Improving a property’s energy efficiency can involve simple changes or significant upgrades:
- Quick solutions: Replacing traditional lightbulbs with LED alternatives.
- Larger upgrades: Installing modern boilers, air-conditioners or heat pumps and enhancing insulation.
- Industrial properties: Reinforcing roofs to accommodate solar panels or extra insulation.
While these updates may capital require investment, they often lead to lower energy bills and increased property value over time and will ultimately ensure that your property can find a tenant.
Supporting Your Compliance Journey
Curzon Land help investors navigate EPC requirements and achieve compliance. Partnering with experienced consultants, we provide tailored advice to assess costs, implement improvements and future-proof your investments.
Leading the Way in Sustainability
We are committed to sustainable property management and welcome collaboration with those pioneering new ways to improve energy efficiency.
EPC regulations are shaping the future of property investment. By planning for compliance, landlords can protect their rental opportunities and ensure long-term value.
We are here to support your journey toward energy-efficient investments. Contact us today to learn more about how we can help.
