As gas and electricity bills rocket, tenants and homeowners alike are looking to make savings on their energy usage.
Until six months ago, out of the thousands of tenants I have shown around Newbury properties in all my years as an agent, I can count the number of tenants who have requested to see the EPC of the rental property on the one hand. Now, it’s the first question tenants ask.
We could see tenants leaving their poor EPC-rated properties, which are too expensive to run moving into higher-rated EPC rental properties.
On average, Newbury tenants will have to find an extra £183.00 per month for their gas and electricity bills.
It is a legal requirement for every rented property to have an EPC which rates a property on its energy performance (like those washing machine or fridge ratings, albeit for a property). A is the best rating, and G is the worst.
Whilst the law states property cannot be rented with an EPC rating lower than an E in England and Wales, there are exceptions to this, meaning rental properties are still being let legally with an F and G rating. Here are the potential cost implications for higher vs lower EPC ratings:
- A property with a D rating will cost £38.50 more per month than a C-rated property
- A property with an E rating will cost £67.66 more per month than a D-rated property
- A property with an F rating will cost £97.16 more per month than an E-rated property
The Government has proposed introducing a minimum EPC of band C for all new tenancies from 2025 (and 2028 for existing tenancies).
Irrespective of this new potential legislation, those Newbury landlords with low EPC ratings will now need to seriously consider making those energy efficiency upgrades to ensure their rental properties continue to appeal to tenants.
A property’s energy efficiency rating could potentially filter into rental prices over the winter months.
Rental properties with low EPC ratings will probably rent for between 4% to 10% less than higher energy proficient properties.
This means landlords could have to accept between £53.52 and £133.80 per month less for an average property with a low EPC rating compared to a high-rated EPC rental property.
A rental property with a lower EPC rating will potentially take longer to find a tenant, especially during the winter. This means landlords face the prospect of void periods early next year.
So, what are the options?
I am experienced in reading EPC reports and am aware of the most cost-effective way to improve the EPC rating of your rental property. Irrespective of whether you are a landlord client of my agency, another lettings agency, or you even manage your property yourself – feel free to drop me a message. I will find your EPC on my database and give you 5/10 minutes of my time, over the phone, at no charge, to guide you on the best options. What do you have to lose?
