The Minimum Energy Performance Certificate rating for Rental Properties in Britain is changing.

With the world working to become more economically friendly, more regulations are coming into place to improve the energy performance of rental properties.

Currently the minimum energy performance rating for a rental property is an E, so many properties will need improvement works to increase the rating, however the legislation is changing. The new legislation means that by 2028 all rental properties will need to reach a minimum energy performance rating of band C.

Help is at hand..

Following the Chancellors Spring Statement 2022, measures have been announced to help alleviate the financial pressures caused by the improvements required.

What does this mean for landlords?

Under previous legislation, landlords were required to spend a maximum of £3500 on upgrades to improve their properties EPC rating to an E, if this rating could not be achieved within this spend limit, landlords could obtain and exemption.

However, under the new Energy Performance proposal, the government aims to increase the upgrade spend cap to £10,000. Landlords will need to consider which upgrades may be necessary and which would improve the Energy Performance Rating to the minimum level. It is also worth taking advantage of the support provided by the UK Government including the proposed VAT cut on the installation of energy efficient materials.

What is covered by the VAT cut?

Homeowners installing some energy saving materials (ESMs) in Britain will be eligible for the new zero-rate VAT. These materials include:

  • Controls for central heating and hot water systems

  • Draught stripping

  • Insulation

  • Solar panels

  • Ground and air source heat pumps

  • Micro combined heat and power units

  • Wood-fuelled boilers

Wind and water turbines have also been re-added to the list as qualifying technologies.

The VAT cut is an additional measure announced alongside the exiting grants to improve energy performance.

We all want to do our best to protect our planet, but sometimes it can be difficult to know where to start. Taking a look at your properties current Energy Performance Certificate is always a good first step, it will list advised works for your property and how these can benefit not only your rating but the cost of living at the property.

For more information on the VAT cut, please click here.

Claire Drake