Michael Gove has been written to by the Letting Industry Council with a request to delay the proposes next change to EPC standards for rental properties. Currently the rating required for properties without an exception is an E band, however it is proposed that this raised to a C rating as from the start of 2025. Interesting that the government are proposing a higher Energy Performance rating for rental properties that is the norm for properties generally, which is currently a D.
The suggested revised timetable is:
- By April 2026: all new and renewed tenancies to have a minimum of D rating.
- By April 2028: all existing tenancies to have a minimum of D rating and all new and renewed tenancies to have a minimum of C rating
- By 01 January 2030: all existing tenancies to have a minimum of C rating
There is also concern that if the maximum investment cap (currently £3,500 including VAT) for energy efficiency works is increased to £10,000 this, along with additional competition due to less stock, will inevitably lead to rent increases which will impact mostly those on low income and typically the more vulnerable groups of tenants.
We will keep you updated with developments.
