All rental homes must achieve E energy rating within three years or be banned

Regulations have now been laid in Parliament to require private rental properties to be brought up to a minimum level of energy efficiency from April 1, 2018.

It means the clock is now ticking for such homes to achieve an EPC rating of at least E.

Energy and Climate Change minister Ed Davey (Lib Dem) said that these “new tough rules for the private rented sector” would benefit around a million tenants.

The changes mean that F and G rated properties will become illegal to let out.

But Spark, the specialist energy provider to the private rented sector, warned that the requirement could prove a disaster.

The firm estimates that one in ten private rental properties will become illegal for rental purposes in the next three years, and that energy efficiency upgrades cost on average £9,000 per property – more than a year’s average rent.

Chris Gauld, CEO at Spark, said: “This legislation has the potential to burst the current buy-to-let boom.

“If landlords cannot afford these upgrade costs, which will run into thousands of pounds, then their rental property will be unlettable and void periods would inevitably follow.

“This could spell disaster for landlords and that is why we are urging them to check the EPC rating of every property in their portfolio and plan ahead for these added costs.”

He said it was important for the changes to be communicated early to landlords.


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  1. easternagent

    Anyone with a modicum of intelligence will see that this proposal is severely going to restrict the number of properties available to the rental market and thereby exacerbate the availability of ‘roofs over heads’ for those who can only afford rent because the governments push to build new home is not catering for small affordable homes for youngsters/first time buyers.

    Have our wonderful politicians even considered the fact that a ‘Listed’ building, of which there are very many in my neck of the woods and of which we have very many on our lettings register, are expect from the need to have an EPC yet these are generally the type of property that need updating in terms of energy efficiency.  How are you going to get round that one Mr Davey?

    1. wilko

      Can’t agree with your reasoning here. E or below is awful for energy efficiency. You can get to E easily with spending of less than £100. I don’t think any landlord wouldn’t upgrade (if below E), After all, is the alternative really taking it out of the rental sector, I don’t think so.

  2. Peter

    You know, maybe just upgrading to LED’s might well get the property to an E!


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