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Labour Confirms Future Minimum EPC C Rating For Rental Market

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    Rental Homes Will Need EPC C by 2030

    During a speech at the Labour Party Conference in Liverpool, Ed Miliband confirmed intentions to change legislation surrounding EPC ratings in UK rental properties.

    He announced to Labour supporters that buy-to-let landlords will be prevented from letting out properties with an EPC rating lower than C from 2030. This policy has been floated by Ed Miliband before, but the Energy Security and Net Zero Secretary took the opportunity at the conference to officially announce this future change.

    This reverses the previous government’s U-turn on EPC ratings last year when they scrapped a proposal to force landlords to upgrade to C by 2028.

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      EPC Ratings

      Upgrading Property Rating Can Boost Value and Reduce Bills

      The current minimum rating that private landlords must achieve before letting out a property is EPC band E. An EPC rating is valid for 10 years and is a legal requirement for buy-to-let property investors.

      Research from Rightmove has shown that improving a home’s EPC rating can increase its value. By upgrading from an F to a C certificate, homeowners see an average boost to the property’s value of 15%, or £55,786 in cash terms.

      In a separate report, Rightmove also found significant differences in energy bills when comparing highly rated properties to those lagging behind. Their data revealed that a G-rated 1-bedroom apartment had an average annual bill of £6058, while a 1-bedroom with a B rating typically had an average yearly bill of just £695.

      While many in the property sector welcome moves to make the industry more environmentally friendly, a report from Hamptons last month concluded that it is likely to take much longer than 6 years to upgrade all UK properties to an EPC level of C.

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      Focus on EPC Attracting Investors to New-Build Properties

      As mentioned, the previous government also proposed upgrading the minimum EPC requirement for rental homes to C, accelerating the trend towards energy efficiency in the property sector in the past few years.

      Retrofitting an older property to improve energy efficiency can be costly and time-consuming. This has led to many property investors opting for new-build investments to ensure compliance with potential future regulations.

      New-build properties are often more eco-friendly thanks to technologies such as heat pumps, solar panels and rainwater recycling systems. Newly built homes have energy efficiency taken into account from the start of the design and construction process, likely avoiding the need for expensive upgrades later on. Zoopla states that 85% of new-build properties in the UK attain an A or B EPC rating compared to less than 5% of older properties.

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      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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