To hit that carbon-neutral target (as one-fifth of the UK's carbon output comes from residential property), every UK home will need to achieve a minimum grade of ‘C’ on their Energy Performance Certificate (EPC) by 2035. Each EPC has a rating between ‘A’ and ‘G’ - 'A' being the best energy rating and 'G' the worst – like an energy rating on a fridge or washing machine.

All UK rental properties have required an EPC. Yet, from April 2020, the Minimum Energy Efficiency Standards (MEES) regulations have required all private rental properties (including rental renewals) to have a minimum EPC rating of ‘E’ or above.

The problem is some Broadstairs landlords will find it very expensive, neigh impossible, to improve the energy efficiency of their Broadstairs rented properties, especially those Broadstairs landlords who hold older housing stock such as terraced properties built in the 1800s. These Victorian terraced houses never perform well on EPC ratings as they have solid walls. 

Now, of course, you can improve the EPC rating of a terraced house by improving roof insulation, boiler replacement, solar heating, and high-grade uPVC windows. Yet, with some terraced houses, there will come the point where you will be unable to get to the haloed 'C' rating without installing external or internal wall insulation, sometimes even floor insulation.

With wall insulation costing between £5k and £15k and floor insulation around £5k …

 

 

But before I talk about what the options are for Broadstairs landlords, here’s the weird part of EPC’s. An EPC rating is calculated on the cost of running a property and not the carbon output or energy efficiency, despite its name.

 

My advice to Broadstairs landlords - although it’s correct to create a future strategy, all I can say at this point is 'more haste less speed'. These rule changes are only a discussion paper, and it remains open for consultation by any member of the British public until 30^th December 2021. That means the Government's strategies and tactics may change.

 

 

For example, there is presently a cap of £3,500 for energy improvements that Broadstairs landlords have to spend to get it to the existing EPC ‘E’ target grade on private rented homes (i.e. if you have a privately rented home at an 'F' or 'G' EPC rating, you only need to spend a maximum of £3,500 as a landlord on improving your EPC rating and still being legal even if those £3,500 don't get you to the current 'E' rating minimum). So, if the current rules allow an exemption to the EPC renting rules, if a Broadstairs landlord can’t improve their Broadstairs property enough, conceivably, could this be extended?

So, what are Broadstairs landlord’s options?

 

One thing you could do is put your head in the sand and hope it all goes away!

 

Another thing some savvy Broadstairs landlords do (be they my client, clients of other letting agents in Broadstairs or even self-managing landlords) is to sit down and plan a strategy for their Broadstairs rental portfolio. I print off all the EPC’s of their rental portfolio, look at the recommendations, then discuss a plan to ensure they are covered whatever the Government decides to make the new EPC rules. Like all things in life, plan for the worse and hope for the best.

 

If your agent isn't offering that service, please drop me a line because I would hate for you to miss out on the advice and opinion that so many Broadstairs landlords have already had from me. The choice is yours.