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Government abandons new EPC targets

16 October 2023

UK Government abandons higher Energy Performance Certificate (EPC) targets, providing relief for landlords.

Higher Energy Performance Certificate (EPC) targets for private rented property were going to come into force in 2025 for new tenancies and 2028 for existing tenancies. The proposed changes would require landlords to invest in energy improvements or potentially be fined.

On 20th September 2023, the Prime Minister announced that the Government is abandoning these targets. 

What are the changes?

  • Landlords will no longer have to improve the energy efficiency of let homes to at least grade ‘C’ by 2025 (new tenancies) or 2028 (existing tenancies). The minimum rating remains at ‘E’. 

What does this mean for our clients?

  • Landlords will no longer need to incur significant expenditure on upgrading the energy efficiency of their properties to achieve ratings of ‘C’.

  • Landlords may be inclined to approach energy efficiency regulations with some caution, this is an area of policy prone to sudden change.

  • A future government may revisit this decision. The Prime Minister’s speech showed that energy efficiency policy is now a live political issue.

  • The Government only abandoned the proposed changes; the existing regulations remain in place. Landlords granting a tenancy of a residential property for the first time will still need to meet the lower-level energy efficiency targets: the property must achieve an ‘E’ rating or the landlord must spend at least £3,500 on energy efficiency improvements to the home in question.

  • The EPC announcement came in addition to announcements on a delay on the ban on new oil and gas boilers, as well as coal heating off the gas grid, from 2026 to 2035. Furthermore, the existing boiler upgrade scheme will be raised by 50% to £7,500.

Source: PM speech on Net Zero: 20 September 2023

To expand your understanding of this evolving landscape, we recommend reading our in-depth previous articles: 'EPC and MEES Regulations: What You Need to Know in 2023' and 'EPCs and MEES: What You Need to Know'. 

 

If you would like to discuss any aspect of this article further, please contact Susannah Hope or Orlando Bridgman by email or call any member of the property team on 0113 244 6100.

You can also keep up to date by following Wrigleys on X.

The information in this article is necessarily of a general nature. The law stated is correct at the date (stated above) this article was first posted to our website. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors.

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Orlando Bridgeman View Biography

Orlando Bridgeman

Associate
Newcastle

Susannah Hope View Biography

Susannah Hope

Trainee Solicitor
Leeds

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