Can Landlords Meet the Government’s New Proposed EPC Target by 2030?

According to Hamptons’ latest rental report, the private rental sector faces a challenge in meeting the newly proposed energy efficiency target. The government has suggested that all privately rented homes should achieve an Energy Performance Certificate (EPC) rating of A-C by 2030. If this proposal becomes legislation, it will significantly impact the buy-to-let investment market.

Hamptons’ analysis suggests that the proposed target will be overshot by twelve years at the current rate of energy-efficient improvements in the sector. They found that if the current rate continues, all properties in England and Wales will meet the standards in 2042.

However, the good news is that this is a much more promising timeframe than the 89 years it would have taken to meet the rating target if 2016 rates continued. Hamptons states that it is achievable within a generation to take 100% of rental homes where viable to EPC A-C.

The savings made on bills in energy-efficient homes are substantial, especially now due to the currently high cost of energy. According to Hamptons, the average tenant could save £499 a year on utility bills if their home is upgraded from an EPC D rating to a C. For homes rated E, the potential savings rise to £1248 a year.

As tenants become more conscious of energy efficiency in rental properties and various government proposals have pressured landlords to improve their EPC ratings, there has been a greater emphasis on green investment in the private rental sector.

However, the costs of upgrades are a significant factor holding property investors back from improving their stock, which has contributed to the popularity of new-builds in the current buy-to-let market. Many of these properties are built with energy efficiency in mind and already have the latest eco-features installed. This strategy allows investors to stay ahead of any rule changes and future-proof their investment, giving new-build properties a reputation as one of the safest investments.