The residential lettings sector is undergoing a period of significant change.
Hannah Seton (pictured left), a director for Savills Oxford, and Harriet Hemmings (pictured right), an associate for Savills Chelmsford, discuss why this might present a timely opportunity for rural landlords and estate managers to review any rental properties on their books.
Along with the introduction of the Renters’ Rights Act, the Government has announced an overhaul of the framework for Energy Performance Certificates (EPCs).
An EPC outlines how energy efficient a property is – rated from A (the most efficient) to G (the least efficient).
What are the proposed changes to EPCs?
As part of its Warm Homes Plan the Government has said that the majority of privately rented residential properties in England and Wales must have a minimum EPC rating of C or above by October 2030. Those with eligible properties that fail to comply could face a fine of up to £30,000. There are exemptions. For example, if it can be shown that any improvements will affect the listed status of a property. Homes where the cost of undertaking any work to improve the energy efficiency exceeds a cap of £10,000 are also exempt.
The Government has confirmed that any expenditure from October 2025 onwards will count towards this cost cap – meaning that landlords can take action sooner rather than later. Current EPCs will also still be valid until their expiry date.
What steps can rural landlords take to improve their rental properties?
The publication of the Warm Homes Plan has provided some insight for rural landlords and estate managers, who can now plan ahead for expected expenditure over the coming years. For those with older buildings it presents an opportunity to strategically assess the efficiency of any rental properties within their portfolio – establishing the energy performance so that future costs can be budgeted and any work completed in good time.
Potential upgrades could include:
- Improving insulation in roofs and cavity walls
- Installing double or triple glazed windows
- Installing a more economical and energy efficient boiler
- Upgrading heating controls or thermostatic valves on radiators
- Fitting draft strips for doors, windows and floorboard gaps
- Switching to more energy efficient LED light bulbs
Depending on the age and listed status of the property in question some improvements may need planning permission before you can proceed. It may also be necessary to notify your insurer. Ultimately, taking steps now and preparing early should pay dividends in the long run – helping rural landlords and estate managers to budget costs and potentially reduce energy bills for future tenants.
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