You may have heard of the Renters’ Reform Bill, but have you considered the proposed upcoming changes to Minimum Energy Efficiency Standards (MEES)?
If passed, these regulations are set to impact landlords across the UK, and if you own rental properties in Devon, it’s essential you start preparing early and stay ahead of the curve by future-proofing your investment.
Under the proposed legislation, from 2028 all new tenancies will need an Energy Performance Certificate (EPC) rating of C or above. By 2030, this requirement will extend to all tenancies, meaning landlords with existing tenants will need to meet the new standard or face penalties.
At Complete Property, we understand that these changes may seem daunting, but we’re here to help. Our expert team can guide you through the process, ensuring that your properties remain compliant and profitable.
We’re also offering a free no-obligation review for any landlords who are worried about what the changes might mean for them. Complete the form below or email lettings@completeproperty.co.uk for more information.
What Are the Current Energy Efficiency Rules?
At present, landlords must ensure their rental properties meet a minimum EPC rating of E before letting to tenants.
This rule has been in place since April 2020, with exemptions available in cases where improvements would cost more than £3,500. However, the new regulations would push these standards further.
Landlords will need to plan ahead to ensure compliance and avoid potential fines. At Complete Property, we recommend that landlords start assessing their properties now to determine what upgrades may be required.
Why Are These Changes Being Introduced?
The UK has some of the least energy-efficient housing in Europe, with many older properties lacking insulation, modern heating systems, or double glazing. This leads to:
- Higher energy bills for tenants
- Greater carbon emissions
- Poorer housing conditions
By raising EPC requirements, the government aims to:
- Reduce energy costs for tenants, helping to ease financial pressure
- Improve housing quality in the private rented sector
- Help the UK meet its net-zero carbon targets by 2050
At Complete Property, we support landlords in Devon by helping them understand these requirements and providing expert advice on how to improve energy efficiency without excessive costs.
How Will This Impact Landlords?
With the proposed new energy efficiency standards on the horizon, you need to consider how these changes will affect your property/properties, finances, and ability to let homes in the future.
While improving EPC ratings can bring long-term benefits, such as increased property value and tenant demand, the upfront costs and stricter regulations may pose challenges. The impacts on you as a landlord include:
1. Higher Costs for Upgrades: Raising an EPC rating from E to C can require significant investment, including improving insulation, upgrading heating systems, or installing double glazing. The government has suggested a spending cap of £10,000 per property, meaning landlords may need to budget for costly improvements. Complete Property can help you to assess what changes are necessary and explore funding options.
2. Stricter Exemptions: There will still be an exemptions register, but the threshold for qualifying will be raised. In the past, landlords could apply for an exemption if the required work cost more than £3,500, but this threshold is expected to rise significantly. At Complete Property, we stay updated on government policies and can help you navigate the exemption process.
3. Rental Income and Property Value: While the cost of improvements may be a concern, upgrading energy efficiency can increase a property’s rental appeal. Tenants are increasingly prioritising energy-efficient homes to reduce their bills. Landlords who invest early may be able to command higher rents and attract longer-term tenants. On the flip side, properties that don’t comply with the new regulations could become harder to let or decrease in value. Our Complete Property team can help you make strategic decisions about improvements to maximise the return on your investment.
4. Compliance Deadlines Are Approaching: While 2028 may seem far away, you should start making improvements now. The closer we get to the deadline, the more demand will rise for tradespeople, materials, and energy assessors, potentially increasing costs.
At Complete Property, we encourage landlords to take action early. By spreading the cost of improvements over several years, you can avoid last-minute expenses and disruption to tenancies.
What Improvements Can Landlords Make?
You should consider the following upgrades to meet the proposed new EPC requirements:
- Upgrading insulation: Loft, cavity wall, and solid wall insulation can significantly improve energy efficiency.
- Replacing old boilers: Installing modern, energy-efficient boilers or heat pumps can lower energy usage.
- Installing double or triple glazing: Reduces heat loss and improves EPC ratings.
- Switching to LED lighting: A simple and cost-effective way to improve energy efficiency.
- Solar panels: While a larger upfront investment, they can provide long-term savings on energy bills.
Complete Property works with trusted local contractors who specialise in energy efficiency upgrades, ensuring that landlords receive high-quality work at competitive prices.
Can Landlords Have Their Say?
Yes! The government is still consulting on these changes, and landlords can submit their views before 2nd May on the Gov.uk website. [https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance]
The details of exemptions and funding options are still being finalised. At Complete Property, we are closely monitoring updates and will keep landlords informed as new information emerges.
What Financial Help Is Available?
The government has introduced various schemes to support energy efficiency improvements, including:
- Boiler Upgrade Scheme: Offers grants for replacing old gas boilers with heat pumps.
- Green Home Grants (previously available): Future funding schemes may be introduced, so landlords should stay informed.
- Local authority grants: Some councils offer incentives for landlords improving energy efficiency.
Complete Property can help you explore the funding opportunities available to you and ensure you take advantage of any available financial support.
How Can Complete Property Help?
Navigating these regulatory changes can be overwhelming, but Complete Property is here to help. Our expert team works closely with landlords to:
- Assess current EPC ratings and identify necessary improvements
- Advise on cost-effective upgrades to meet compliance
- Keep landlords updated on government policy changes
- Assist with funding applications and exemption processes
- Help landlords maintain compliance to avoid fines
If you’re unsure how these new energy efficiency rules will affect your rental property or properties, give us a call on 01626 362246 or complete the form below.