Are you a property investor? Read the new EPC rating regulations you should be aware of
If you are on the market for an investment property, there is an important consideration to keep in mind when making your purchase. The UK government has set new regulations that will require all newly tenanted properties to have an EPC (Energy Performance Certificate) rating of C or above from 2025, and all existing tenanted properties will be required to have the same rating by 2028.
An EPC rating is a certificate that shows the energy efficiency of a property. It ranges from A (most efficient) to G (least efficient) and is based on factors such as insulation, heating systems, and the type of windows used. It is important to note that an EPC rating is not only beneficial for the environment, but it can also help save on energy costs for the tenants.
So, why is this a concern for potential property investors?
Firstly, if you are looking to purchase a property now and its EPC rating is below a C, you may need to carry out substantial work in order to increase the rating. This work can be costly and may not be an expense you had factored in when making your investment. For example, if the property has single-paned windows, you may need to replace them with double-paned windows to improve the insulation and increase the EPC rating. Similarly, if the property has an outdated heating system, you may need to install a new, more energy-efficient one.
Secondly, failing to ensure that your property's EPC rating meets the requirements could result in a penalty of up to £30,000.00 once these new regulations are in effect. This means that if you leave things until the last minute, you may not have the time to get the required work done, leaving you at risk of a penalty. Additionally, if you are unable to increase the EPC rating to a C or above, you may not be able to rent out the property to tenants.
It is important to keep in mind that these regulations are not only beneficial for the environment, but they can also help you save on energy costs in the long run. Furthermore, tenants are becoming more conscious of the energy efficiency of properties, and by having a higher EPC rating, you may attract more tenants and potentially charge higher rent.
How Wolferstans' Property team can help you
It is important to plan ahead and factor in these new regulations when making your investment decisions. By being proactive, you can ensure that your property meets the new standards and avoid any potential penalties.
If you are looking to proceed with a purchase and you require assistance from a conveyancer, please do not hesitate to get in touch with our property team. We will be more than happy to help guide you through the process and ensure that your investment is a success. Read what one of our recent clients had to say:
"We are so pleased with the service we received from Leonie. She was always so quick and efficient and answered any questions or queries we had. Leonie supported us whilst we bought our first home, and we are so grateful for all her help. Thanks Leonie." - Emma and James on Review Solicitors.