Analysis by Houseprice.AI, reported by Letting Agent Today, found that 251,300 privately rented homes in the South East fall below Band C. Across England and Wales, the figure stands at more than 1.9 million, with 53% of privately rented homes currently below the required standard.
The findings underline why landlords would be wise to start reviewing their properties’ energy performance now, allowing time to understand their options and plan for any necessary changes.
How Does the South East Compare?
According to the analysis, 49% of privately rented homes in the South East currently achieve EPC ‘C’ or above, compared with 54% in London. However, London faces particular challenges, with some inner London boroughs recording high proportions of properties that may be unable to reach Band C, even if all the improvements recommended on their energy certificates are completed.
For landlords in all of these areas, maintaining a property that meets tenants’ needs while preparing for changing energy-efficiency requirements will be an important consideration.
What Does the 2030 EPC ‘C’ Deadline Mean for Landlords?
Under the Government’s plans, privately rented homes in England and Wales will need to meet the new minimum energy-efficiency standard by 1 October 2030, unless an applicable exemption or transitional arrangement applies.
The new requirements will use updated EPC metrics, focusing on a property’s fabric performance alongside either its heating system or smart readiness. Landlords should therefore avoid assuming that their existing EPC rating will necessarily tell the whole story under the new system.
The work required will vary from one property to another. Depending on its construction and current energy performance, improvements could include additional insulation, heating upgrades or other measures recommended following an appropriate assessment.
Could It Be Time to Review Your Investment Strategy?
Reviewing the costs and options early can help landlords make informed decisions rather than leaving them until closer to the deadline.
For some landlords, simply improving their current property could be the most viable step forward, particularly where the work is manageable and the investment supports their longer-term rental plans.
For other landlords, particularly those facing substantial improvement costs, the forthcoming requirements could be an opportunity to review their wider investment strategy.
Depending on their circumstances, selling a property that would be costly or difficult to upgrade and investing in a more modern, energy efficient buy-to-let property may be worth considering.
Properties in our local areas of North Hampshire, Surrey and Berkshire offer an appealing alternative to London, with a choice of towns and villages, access to green spaces and convenient commuter connections into the city, including direct rail services.
Is Your Rental Property Ready?
If your property currently has an EPC rating of D or below, now is a good time to review its energy performance and establish what steps may be needed before 2030. Even if your property already has a C rating, it is worth understanding how the new requirements and transitional arrangements could affect you.
At Mackenzie Smith, our Lettings team understands that every landlord and property is different. We can offer tailored advice to help you understand the considerations involved, prepare for changing requirements and make informed decisions about your rental investment.
Contact our Lettings team to discuss your property and how we can support you. Email lettings@mackenziesmith.co.uk, or call 01252 514000.
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