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Housing, Investment, Property

Energy Performance Certificates (EPC) changes for Investment Property

Energy Performance Certificates (EPC) are a legal requirement for a property when marketing for new lettings or sales, and private rented property in England and Wales must have an EPC rating of E or above. The most energy-efficient properties start at A, and the less energy-efficient properties have a rating of F or G. Landlords must get a new EPC certificate every ten years, and some exceptions apply and usually, the exemption lasts five years. The government’s push for energy-saving policies has been implemented to reach net zero by 2050.  


From 1 April 2025 the minimum EPC rating will be raised from E to C, meaning all properties must invest in energy-efficient improvements on their properties for all new tenancies, and from 1 April 2028, the same will apply for existing tenancies. The cost cap is meant to be raised from £3,500 to £10,000 per property and the government has mentioned this move should be sufficient to bring around 90% of properties from D to C, and about 60% of properties rated E. 


The EPC rules apply to properties in the private rental market, property must be on a lease between six months and 99 years, located in England and Wales. Scotland has similar rules already in place. Property investors should look into speaking to an EPC assessor to find out their EPC rating, how to proceed with improvements in case required, and in case improvements are implemented, request a new EPC to comply with the new rules. Upgrading EPC can certainly add value to your property as energy-efficient properties usually sell higher than less energy-efficient properties. Properties not complying with the new rules could face penalties from £5,000 to £30,000. 


If you are looking into purchasing a new investment property to expand your portfolio, upgrading a current property or require finance for a different project, we would be happy to provide a free initial consultation to navigate your potential financial options. Get in touch with your local ASC office to find out more. 


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