Following the recent announcement by Prime Minister Rishi Sunak that homeowners and landlords will no longer be required to improve the energy efficiency of their properties to a minimum rating of C or above, many landlords may be questioning their plans to improve the EPC rating on their rental properties.
However, in our opinion, landlords should still pursue their plans to improve EPC ratings – even if the immediate urgency has been lessened from a regulatory perspective, the urgency from an environmental perspective has never been greater, and the financial and social benefits also remain.
The removal of the deadline for proposed legislation changes presents an opportunity for landlords to reassess their approach to upgrading their rental properties’ EPC credentials, and to take the time to plan and identify any financial incentives or schemes that could help.
One such scheme is the government’s Boiler Upgrade Scheme, for which both landlords and owner occupiers are eligible. As of Monday 23rd October 2023 the maximum grant available through the scheme will be increased to £7,500 per household, rising from a current maximum of £5,000 for air source heat pumps and £6,000 for ground source heat pumps. Biomass boiler grants will remain at £5,000. This may help lighten the financial burden of upgrading the energy performance of a property.
Pursuing plans to improve rental stock may bring about many benefits, such as increased property value and potential reductions in maintenance costs. Furthermore, it also future proofs the property against any regulatory changes that may arise and helps to attract and retain good quality tenants.
Tenants also benefit from these changes, as they may have reduced monthly bills, enhanced comfort, health and well-being, and can contribute to global efforts to combat climate change and protect the planet.
Our refurbishment range is designed to help landlords improve the energy rating of their rental stock and/or improve the general condition of the property. The products offer the ability to release the costs of the refurbishment upon completion, without having to change product. The range is available to individuals and limited companies and is applicable on standard buy-to-let properties, small houses in multiple occupation (HMO) and small multi-unit freehold blocks (MUFBs). Overall, we encourage landlords to continue with their plans to improve their EPC ratings and the overall standard of their properties, as there are many benefits for both them, their tenants and the environment. Brokers will be important in advising landlords on solutions which may help them to fund the changes.
Benefits to Landlords of keeping and attracting quality tenants.