March 6, 2023 11:46 am

The Energy Performance of Buildings Directive (EPBD) is a new legislation that aims to increase the energy efficiency of buildings and reduce the overall energy consumption of the EU member states.

As part of this legislation, landlords will be required to improve the energy efficiency of their properties and achieve a minimum Energy Performance Certificate (EPC) rating of E before they can be rented out to tenants. The requirement for EPCs to meet a minimum rating of C has been proposed from 2025.

The Energy Performance of Buildings Directive (EPBD) is a new legislation that aims to increase the energy efficiency of buildings and reduce the overall energy consumption of the population.

The specification of this legislation is that all landlords will be required to improve the energy efficiency of their properties and achieve a minimum EPC rating of E before they can rent out their properties to tenants. And be aware, when you list your property, you do need to specify what rating your property is and produce a copy of the latest EPC certificate to your new tenant.

An EPC is a certificate that shows how energy efficient a building is, based on factors of insulation, lighting, and heating systems, Buildings are rated on a scale of A - G, with A being the most energy efficient and G being the least. The new legislation requires that landlords achieve a minimum rating of E before they can rent out their properties.

You can read more about the EPC certificates and hat is required here:

https://www.gov.uk/government/collections/energy-performance-certificates

This new legislation will have a significant impact on landlords, due to the fact that a majority of properties are rating below the required minimum EPC rating.

Right now, landlords are facing huge fees to invest in the required energy efficiency measures for improving their property's EPC rating, including:

  • Insulation
  • Lighting
  • Heating systems

The good news is that the government is here to help landlords which grants known as the ECO grant is a government-funded program that provides financial assistance to households to improve their energy efficiency and reduce their energy costs. It is designed to help low-income and vulnerable households make energy-saving improvements to their homes, such as insulation, boilers and central heating systems, to reduce the number of households living in fuel poverty.

If you have a tenant that qualifies for these measures, then you could be entitled to free or reduced cost measures, something which is always worth exploring.

Read more here “How-do-landlords-benefit-from-eco-grants.

Landlords should take advantage of the grants and funding available to help them comply with the new legislation

Additionally, landlords can also take advantage of other benefits by improving their EPC rating, for example, many tenants are now looking for energy-efficient rental properties as part of their search criteria, as energy-efficient properties are more comfortable to live in and can help save them money on energy bills. By achieving a higher EPC rating, landlords can make their properties more attractive to potential tenants, increase their property's value and get a better return on investment.

In conclusion, the new EPC legislation will have a significant impact on landlords, but it also presents an opportunity for landlords to improve the energy efficiency of their properties, reduce their energy costs, and make their properties more attractive to potential tenants.

Landlords should take advantage of the grants and funding available to help them comply with the new legislation and also improve the overall value and comfort of their rental properties. It's important for landlords to familiarize themselves with the new legislation and start planning now to make the necessary improvements to meet the minimum EPC rating requirement.

Who is it for and how to apply and what to do next

At the time of writing this article, the available grants are for homeowners with an income of £31K or below, and / or in receipt of benefits, such as Tax credits etc, for the full list of qulaifying benefits, visit here.

However, there are measures being put into place for the coming months to make these grants available to higher income households. 

Please do complete the "Stay in the know" over on the side bar and we will email you when new grants come available.

To apply for your grant or book an energy efficiency home survey to find out where your home could be more energy efficient, contact us below.