Services for landlords

It is estimated around 3 million rented homes in the UK have an EPC of C or below.  

The Minimum Energy Efficiency Standards (MEES) introduced in 2018 require all privately rented homes to have a minimum EPC rating of E. It is against the law for landlords to rent out properties with an EPC rating lower than E unless they have a valid exemption. 

Government policy on EPCs keeps changing. The Conservative government first announced plans to  tighten the regulations as part of the UK’s 2050 Net Zero strategy. In 2021, the target was for all landlords in England and Wales to improve their properties’ EPC rating to a minimum of C by 2028. As late as 2023 Rishi Sunak delayed the implementation and said timescales would be pushed back. 

Under Labour, the deadline of a minimum C rating has been pushed back to 2030. 

The best time to plant a tree is yesterday. Landlords should consider taking measures to upgrade energy efficiency measures as part of planned and preventative maintenance programmes, or as part of planned refurbishment activities. It is often less expensive to coordinate retrofit measures alongside maintenance or refurbishment activities. 

Undertaking energy efficiency works during periods of vacancy will also mean less risk of lost rent revenue. If you have your retrofit plan in advance, works can be scheduled in between tenancies.

Retrofit interventions can often be staggered, rather than a one-off exercise, but this needs careful planning and sequencing. By spreading out the work over time, you can avoid a large financial hit closer to the deadline.  A retrofit plan will enable you to prioritise the work and sequence it correctly. 

 If you are a landlord with multiple properties, that are of the same construction type and share similar characteristics and needs, we are able to offer reductions for multiple plans. If the properties in your portfolio are identical, one plan can be used across the stock. 

Landlords in certain areas may be able to get funding through various pathways in the Warm Homes Local Grant.  Under the policy, landlords can access funding to improve properties where tenants meet the income eligibility criteria. The scheme offers full funding for energy efficiency upgrades on one property per landlord. For any additional properties, landlords must provide a 50% contribution towards the cost of improvements.

Key eligibility points include:

• Tenant Income: The tenant must meet certain income thresholds, such as earning below £36,000 annually or receiving a means-tested benefit.
• Property Requirements: The property must have an EPC rating of D, E, F, or G.
• Properties already rated A-C are not eligible. 

Landlords will need to guarantee that they do not intend to raise rents as a direct result of any upgrades funded by the scheme.  It is expected to run from 1st April 2025 for 3-5 years. The grant will be available through local authorities. More info here:  Warm Homes: Local Grant - GOV.UK (www.gov.uk) 

A consultation is due to be published on the Minimum Energy Efficiency Standards (Minimum EPC levels and funding) in December 2024. 

Currently a high cost exemption can be registered if the measures are likely to exceed £3,500. This is, in effect, a spend cap for landlords to bring their properties up to minimum levels. Where third party funding (grants) is  unavailable and the landlord is using their own  funding, Labour has indicated it may raise the cost cap  to £10,000 in the future, but this is yet to be confirmed.