9:30 AM, 13th February 2025, About 3 hours ago 16
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Proposals in a government consultation could force landlords to update their EPCs every time a tenant renews their tenancy agreement, even if it’s with the same tenant.
Under current rules, EPCs are valid for ten years, and when they expire, a new one isn’t needed unless you’re entering a new tenancy with new tenants or selling the property.
Following on from yesterday’s article about the proposed EPC changes, we delve deeper into what the proposed changes to EPC validity could mean for landlords.
In a consultation on EPCs, the government suggests forcing landlords to update EPCs more frequently.
The consultation says: “We are proposing to introduce for private rental properties a new trigger point where an EPC is required for when the current one expires.”
The government suggests that updating an EPC would be similar to updating a gas safety certificate, which is required every 12 months.
“This measure would also support energy performance improvements in PRS buildings that are subject to minimum energy efficiency standards (MEES). It would be similar to other requirements on landlords throughout tenancies, such as valid building insurance or gas safety certificates, and can be managed through letting agents where appropriate.
“Close working between MEES enforcement bodies and EPC enforcement bodies can assist with managing overall compliance rates”.
Behind the government’s push to require a valid EPC throughout a tenancy, the consultation says the average tenant in the private rented sector stays for 4.3 years.
The government argues this means many long-term tenants could be living in properties without an up-to-date EPC.
The consultation says: “In addition, even if a tenant is in a property for less than the average period, the EPC for that property could still expire while they were living there.
“The presence of a valid EPC throughout a tenancy, rather than solely at the point of marketing, would ensure landlords and tenants are equipped with accurate and up-to-date information. This could also help improve compliance with government policies and commitments such as MEES and ensure that properties remain attractive to existing and potential tenants.”
The government claims that reducing the validity period of EPCs could allow building upgrades, such as fabric changes, to be captured more frequently.
The consultation says this would provide prospective buyers and tenants with more accurate and up-to-date information to inform decision making which may directly impact their cost of living.
The government does admit that reducing the validity period would greatly impact private landlords.
However, claims landlords will only incur a “small increase in costs from regular EPCs.”
The government recently announced all private rented sector properties will need to meet EPC C targets by 2030 and 2028 for new tenancies.
Numerous articles on Property118 have revealed the cost of upgrading a property to a C could cost thousands of pounds, and if the validity of EPCs changes, this could mean landlords will have to spend even more on upgrades just to stay compliant.
The government has said that if they reduce the validity period of EPCs, there are several ways they could introduce the change.
The consultation outlines different approaches, such as allowing existing EPCs to remain valid until they naturally expire, immediately invalidating all 10-year EPCs when the new rules come in, or introducing a two-year transition period before the new validity rules take full effect.
Stay tuned for more articles on the EPC consultation where we will delve deeper into the new metrics that will measure EPCs.
Ross Tulloch
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Sign Up9:33 AM, 13th February 2025, About 3 hours ago
My properties have an average of 4 tenants in each, HMO, sharing all living spaces. one of them changes about every 9 months. So going from one EPC every 10 years, to one every 9 months. Just a part of the war on Tenants and Landlords
John Nyari
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Sign Up9:38 AM, 13th February 2025, About 3 hours ago
I thought that under RRB that tenancies are all periodic and so there is no renewal (for single lets at least).
Cider Drinker
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Sign Up9:46 AM, 13th February 2025, About 3 hours ago
Tenants will pay with higher rents.
AT
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Sign Up9:53 AM, 13th February 2025, About 2 hours ago
This topic may or may not be true, if it is more regulations and one sided. How long will the bashing carry on ? Everyone should have an exit strategy for their retirement.
I truly feel it will get difficult to sell properties in the future, with less stock tenants will struggle moving on.
With crap cashflow we are asset rich but cash poor, I hate it when I have to look at costs with anxiety of keeping the properties running, it's not profitable anymore, although we are providing an excellent service and providing housing for many.
Where else can one invest? ISAs may be taxed in the future, for now I'd fund them fully, we haven't done the last 2 years due to high interest rates and zero cashflow.
Now imagine going back in time and funding peps and Isas with apple stock. We didn't do any of that since going into property in 2004.
Perhaps start looking at dividend stocks, growth stocks, etfs, funds and holding spare cash to actually enjoy life.
Not trading advice - markets can crash, there are more black swan events and market manipulation.
Whiteskifreak Surrey
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Sign Up9:58 AM, 13th February 2025, About 2 hours ago
Reply to the comment left by John Nyari at 13/02/2025 - 09:38
Well spotted
Jo Westlake
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Sign Up10:21 AM, 13th February 2025, About 2 hours ago
What is the point of constantly reassessing properties that have already achieved a respectable EPC C? If nothing has changed about the property why require duplication?
Maybe if major works are carried out requiring a new EPC as part of the Building Control sign off could be a valid idea. Also if a new boiler or heating system is installed.
Until EPC assessors are far better trained the whole system is seriously flawed. The fact someone who has done a 4 day on line course has the power to deem someone's home illegal to let is horrific. Knocking a couple of points off an EPC score could very easily result a tenant being evicted and at best could knock thousands off the value of the property.
Right now it's all a bit of a pointless conversation. According to the assessor who did an EPC assessment for me recently the assessment is changing a bit later this year so different amounts of insulation will be acknowledged. Currently if there's less than 50mm of floor insulation it's assumed not to exist. He said there will be different levels of points for 10mm and 25mm.
Then there is supposed to be another charge in calculation methods in 2026. Until anyone knows what the new assessment will churn out we're possibly all worrying unnecessarily.
If more frequent assessments are required who exactly is going to carry them out? Competent assessors are already fairly busy. Will it just be a whole load of clueless, inexperienced people straight off the 4 day online course?
Cathie
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Sign Up10:24 AM, 13th February 2025, About 2 hours ago
Have you all completed the consultation questionnaire on EPC Reform? Closes 26/02/25.
https://consult.communities.gov.uk/.../consultation-on.../
If they are going to put electric (clean) heating above gas, how is that going to save the tenant £240 a year.
John Nyari
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Sign Up10:27 AM, 13th February 2025, About 2 hours ago
Reply to the comment left by AT at 13/02/2025 - 09:53
They are starting to max out on taxing income. So the obvious next thing is assets. Look at farmers, look at pensions. What happens when there is nothing left to squeeze. They don't say it out load but they don't want landlords (specifically small landlords). You can tell because we are increasingly less welcome and yet corporate build-to-rent is on the rise. How can anybody plan for the long term future when such drastic changes occur at such frequency.
Southern Boyuk
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Sign Up10:38 AM, 13th February 2025, About 2 hours ago
The government are so concerned about tenants that they’re only doing this for the PRS and not for social housing.H’mm who’s challenging them on this as the councils are the worst of all landlords
Northernpleb
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Sign Up10:49 AM, 13th February 2025, About 2 hours ago
Another Day , Another Landlord Bashing piece of Legislation.
How many in the last week alone.