EPCs, often known as energy performance certificates, have until recently had little impact on the West Sussex property market. However, it's crucial to be aware that there are significant changes coming to the EPC regulations, and landlords must pay special attention.
What Are EPCs?
The Energy Performance Certificate, or EPC, is the recognised indicator of a building’s energy efficiency. The ratings go from A, the most efficient, to G, the least effective.
The EPC must be included in the selling particulars for every property that is offered for sale. Furthermore, upon moving into the house, all renters must acquire their rental home’s EPC.
Why is the energy performance certificate becoming more important?
EPCs are gaining significance for two distinct reasons:
- With the government’s restriction on the amount that energy suppliers might charge for electricity and gas being removed, the price of energy has already increased significantly thus far in 2022. Utility expenses will significantly increase as a result. Since less fuel will be needed to heat them and as a result energy costs will be cheaper, energy-efficient homes with superior insulation will be more in demand.
- An energy-efficient home will likely be a requirement under new law, regardless of whether the owner is a landlord or an owner-occupier, in order to support the UK government’s efforts to reduce greenhouse gas emissions.
The potential implementation of this new regulation has already had an effect on the West Sussex market.
Deadlines And Targets To Improve EPCs
Owner-occupiers have a clear motivation to increase the energy efficiency of their residence. In the end, a house with a high EPC rating will be more appealing to potential purchasers. Younger buyers of homes will pay greater attention to EPCs than older buyers.
It has been proposed that taxes like stamp duty would someday be related to EPC ratings, meaning that higher EPCs will, in principle, result in less stamp duty to pay and a quicker property sale.
These are challenging and precise goals for landlords in West Sussex.
A rental home must now have an E-rating or above on its EPC. However, the government is eager to revise this to a minimum grade of C for all new leases starting in 2025. A minimum C grade will be implemented for all rental properties by 2028, even those with long-term renters.
Additionally, although it hasn’t been verified yet, the minimum Energy Performance Certificate grade for rental properties seems set to increase to a B starting in 2030.
