EPC

Further changes to EPC rules in residential properties.

Shall we recap... with the help of NRLA. We may even have to call in some assistance from Dave here, if you don't know who Dave is check out our Meet The Team page 'Butter wouldn't melt'. 

The Current Rules 

Way back in 2015 the MEES declared that new rules were coming in to play and that in private rented property in England and Wales EPC ratings must have a rating of E of above, this was then in place from 1st April 2018 on all new tenancies and changed to to be in place for exisiting tenancies on 1st April 2020.

Currently there are some exemptions that you can register.

Firstly, there is a maximum cost cap: currently £3,500 per property, including VAT (and including outside funding such as grants). If after spending this amount on improvements, the property still doesn’t meet the minimum EPC rating, you can register an exemption.

Other exemptions include where work would damage or devalue the building (with evidence from a qualified surveyor), or where you cannot get necessary third-party permission (for example from a tenant, planning authority or freeholder). Exemptions are valid for five years. There is also a temporary 6-month exemption for new landlords.

So what's changing?

In autumn 2020, the government began a consultation on tightening the MEES rules. It’s important to note that the proposals are currently just that, and no regulations have even been drafted yet. The consultation closed in January 2021, but the results have still not been published. 

However, the main proposed changes are as follows:

• Minimum EPC rating to be raised from E to C.
  The plan is to enforce this from 1 April 2025 for new tenancies, and from 1 April 2028 for existing tenancies.

• Cost cap to be raised from £3,500 to £10,000 per property
  The government says this would be sufficient to bring more than 90% of D-rated properties up to a C rating, as well as nearly 60% of E-rated properties. It’s not clear whether existing spending would count towards the new cap.

• “Fabric first” policy to be introduced
  This would control in which order work is carried out, so improvements to the fabric of the building (ie insulation, windows and doors) must be done before additional measures such as new heating systems are installed. 

Don’t delay

There are good reasons to start planning now.