Call us
01242 697821

Blogs

Keep up to date with the latest news and our guides on all things mortgages. 

Landlords, are you up-to-date on the latest Energy Efficiency Standards and EPC requirements?

The importance of reducing greenhouse gas emissions and tackling climate change has led to a wave of regulations and policies aimed at improving energy efficiency in buildings. One of the key measures is the Minimum Energy Efficiency Standards (MEES) regulations, which have been in force since 2018 and require properties to meet a minimum Energy Performance Certificate (EPC) rating to be rented out. As part of the UK government's commitment to achieve net-zero emissions by 2050, there are upcoming changes to MEES and EPC requirements for both commercial and residential properties. These changes could affect landlords who own properties that are not yet compliant, and it is important for them to be aware of the new rules to avoid penalties and ensure their properties are available for renting.

Landlords must be aware of the changes to Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificate (EPC) requirements to comply with the new laws and avoid severe penalties. It is essential to note that commercial properties cannot be leased to new or existing tenants if their EPC rating is F or G. From April 1, 2023, renting out a commercial property that does not have a rating of at least E will be an offense, and the penalty may range from £10,000 to £150,000 per breach based on the property's rateable value.

It is expected that the requirements will become more stringent, with a proposal for a rating of C or higher for commercial properties by April 1, 2027, and B or better by 2030. Similarly, the requirement for residential properties' EPC rating to be E or higher has already been in place since April 1, 2020. This requirement will increase to C or higher for any new tenancies in 2025 and all continuing tenancies in 2028.

It is the landlord's responsibility to comply with the legislation, and the costs may not be delegated to the tenant, although in some cases, they may be recoverable from the service charge. To avoid severe penalties, investors, developers, and landlords should review their portfolios and obtain EPCs where they are not already in place. They should consider the costs of upgrading works, the potential loss of income if the property cannot be rented, and the level of fine for non-compliance.

Applications for third-party consents or exemptions should be made if required. However, landlords should note that experts and contractors may be busy with the approaching deadline. Therefore, they should act sooner rather than later. It is important to mention that landlords who do not carry out sufficient works to improve their property's EPC rating to A-E or register for a valid exemption by April 1, 2023, will face penalties.

Property owners must demonstrate that there is an appropriate EPC rating in place, that all relevant energy efficiency improvements have been made, or that there is a valid exemption. Several exemptions are available, including consent, devaluation, and short-term letting exceptions.

It is crucial for landlords to take the necessary steps to comply with the new Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificate (EPC) requirements. Failure to do so could result in severe penalties and a loss of rental income. Therefore, landlords should review their portfolios, obtain EPCs where necessary, and consider the costs of upgrading their properties. Seeking expert advice and acting promptly can help landlords avoid non-compliance and ensure their properties are available for renting. Don't wait until it's too late, take action now to ensure compliance and protect your investments.

SPEAK TO AN ADVISER

Related

Insurance for the whole family

Insurance for the whole family

Whether you have a bunch of little bunnies, cheeky monkeys or little puppies at home, you want to ma...

Read More >
Soaring debts in the over 55s

Soaring debts in the over 55s

Recent research carried out by Later Life Lender more2life and economics consultancy Cebr has reveal...

Read More >
When Might an Insurer Not Pay a Claim?

When Might an Insurer Not Pay a Claim?

We often get asked, when might an insurer not pay a claim? I understand how frustrating it can be wh...

Read More >
Why It Pays to Speak to a Mortgage Broker Six Months in Advance

Why It Pays to Speak to a Mortgage Broker Six Months in Advance

When it comes to buying a property or remortgaging in the UK, most people don’t think about mortgag...

Read More >
Is your home covered against storm damage?

Is your home covered against storm damage?

As the weather becomes increasingly unpredictable, protecting your home against storm damage is cruc...

Read More >
Why get health insurance?

Why get health insurance?

We all know that the NHS is a vital safety net for people who need medical treatment. However, in so...

Read More >

What our clients say...

Latest Blog

Your Guide to Medical Underwriting

Let’s be honest, insurance can often feel a bit overwhelming when going through the fine print! Whe...
Read More

When Might an Insurer Not Pay a Claim?

We often get asked, when might an insurer not pay a claim? I understand how frustrating it can be wh...
Read More

Have You Heard of the Term ‘Mortgage Prisoners’?

If you’re a homeowner in the UK, you might have heard the term “mortgage prisoner” being thrown a...
Read More

Life Cover Isn’t a Nice Option to Have - It's Essential

Life is unpredictable, and the thought of what would happen to your loved ones if you were no longer...
Read More

Why It Pays to Speak to a Mortgage Broker Six Months in Advance

When it comes to buying a property or remortgaging in the UK, most people don’t think about mortgag...
Read More

Top tips: How to Boost your Income

We’ve scoured the internet and swapped tips around the office to find simple (and sometimes a bit c...
Read More

Health Insurance Isn’t Just for Emergencies

When people think of private health insurance, they often imagine it’s only there for the big stuff...
Read More

How Homeowners Over 55 Can Fund Their Garden Retreats

Over the past few years, many homeowners have discovered the value of creating dedicated spaces in t...
Read More

Buildings & Contents Insurance Has Your Back

When disaster strikes, from a burst pipe, a kitchen fire, or a break-in, you need buildings and cont...
Read More

Understanding Protection vs Insurance: What’s the Difference?

You may have heard the terms “Protection” and “Insurance” (like critical illness insurance and l...
Read More


Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE ASK FOR A PERSONALISED ILLUSTRATION. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.


  • Back to top