Is 2028 the new EPC target date?
Recent reports indicate that the deadline for the introduction of the new EPC target would be extended to 2028.
Most landlords will welcome this extension, however, it is worth noting that it is not really an extension. The original target for a minimum grade C for rental properties was 2030. However, following a consultation in 2021 the expectation was a new target date of 2025 would be announced.
This new date was not confirmed and now the expectation is that 2028 will be the target date. Again, this is not confirmed but has been widely reported, following an article in the Telegraph recently.
New cost cap and £30,000 fine
It appears that the government has changed course following feedback from landlord groups, who have highlighted the potential for landlords to exit the market due to the cost of upgrading their properties.
The Telegraph has also suggested that a new cost cap of £10,000 will be established and this cap will apply whether or not the property achieves a grade C. Within this there is an indication that the cap will be variable and relate to the value of the property.
Finally, there are active discussions about the introduction of a £30,000 fine for those that do not meet the regulations when they are introduced.
What next?
It is important to note that this date is not confirmed, but it does appear to be the direction of travel. Delaying the implementation of the new EPC target makes sense, after all, quite a lot of landlords don’t know about the current rules!
Most importantly though it gives landlords the opportunity to prepare properly and complete the work they need to do.
This delay would validate many landlords' approach of waiting for the new rules to be confirmed before taking action, although as the NRLA is consistently pointing out certainty is required so that everyone knows where they stand.
The tenant perspective
It is not surprising that most tenants have a different view. This is mainly because heating costs are one of their main concerns right now and energy-efficient homes are seen as an important way of bringing down utility bills.
Research indicates that 90% of tenants believe that energy-efficient homes are essential and 82% are prepared to pay more. This reflects recognition from tenants that achieving greater energy efficiency may require an investment from their landlord and will reduce the cost of their energy bills.
Next steps…
As ever to wait. The new EPC target is on the way, but right now there is no confirmation of the date.