42% of landlords unaware of EPC overhaul standards required from them
The latest analysis from epIMS, the EPC and energy efficiency platform developed for landlords, reveals that over 40% of landlords remain unaware that an EPC rating of C is soon to become the minimum standard allowed by law for private rented properties, and more than a quarter don’t know what their current EPC rating is.
On 4 December 2024, the UK government announced a consultation on its proposed changes to the Energy Performance Certificate (EPC) rating system which is currently expected to enshrine in law that, from 2030 onwards, a private rented property must have a minimum EPC rating of C.
But a new survey of landlords in England* commissioned by epIMS reveals that 40% of landlords are unaware that this consultation is taking place.
Furthermore, 42% aren’t aware that the minimum standard required will soon be upgraded to an EPC rating of C.
While an EPC is a legal requirement, with E being the current acceptable minimum for private rented properties, a certificate is valid for 10 years which means a lot of landlords will not have had to consider their rating for quite some time. As such, over a quarter (27%) say they are unaware of what the current EPC rating is for each of the properties in their portfolio.
An EPC rating is ultimately graded alphabetically, with a rating of A indicating the highest possible level of energy efficiency, but these letter ratings are calculated by using an underlying numerical points-based scoring system.
32% of landlords are unaware that EPCs are scored using a points-based system, and a staggering 65% don’t know how many points are required to achieve an overall rating of C.
By 2030, landlords will have to ensure that their properties have a minimum rating of C, or else they will not legally be allowed to be let on the private rental market.
When asked when they plan to carry out the required energy performance improvements, 15% say they’ll do it within the next 12 months, 11% say within the next four years, and on overwhelming 75% appear to be willing to wait until the last possible minute, stating only that they plan to make the improvements ‘by the 2030 deadline’.
When asked what the biggest challenges are in bringing their properties up to the required standard, the most common response is ‘the cost of making the improvements’. The second-most common answer is ‘understanding what improvements will positively impact my EPC score’, followed by understanding to what extent they need to improve their properties to reach a rating of C.
COO of epIMS, Craig Cooper, commented: “A lot of landlords feel like they’re swimming against the tide at the moment, and with the government now intent on introducing new minimum EPC standards, it’s understandable that many feel frustrated at yet another policy that is likely to eat away at their profit margins.
But improving an EPC rating needn’t be difficult or overly expensive, it just requires a good understanding of how ratings are attributed and how different improvements can increase your score.
To this end, landlords are being bombarded with generalised lessons on how to improve a rating, but this knowledge is only so helpful. No two properties are the same, so what’s important is gaining insight into exactly where your specific property is falling short and what improvements are going to have the biggest impact in terms of the points awarded.
With this knowledge in hand, landlords may be pleasantly surprised by how simple and affordable it can be to reach the required standard. For example, the difference between a D and C might only be a few EPC points that can be collected through the most minor of improvements.”
Survey results