Landlords Corner – When Should Landlords Consider EPC Improvements?

Landlords Corner – When Should Landlords Consider EPC Improvements?

As we reach the end of March, it’s fair to say the property market is bustling with deals, hoping to squeeze in before stamp duty changes. The impact of this, and how the market performs after the change, will be a key focus as we move towards summer. For now, though, there are other matters concerning landlords.

What is your next move as a landlord?

Recent changes to government plans around EPC ratings for rental properties have left many landlords uncertain about their next move. While the official confirmation of regulations isn't due until late 2026, landlords are strongly encouraged not to delay essential energy efficiency improvements.

Under the current proposals, properties with new tenancies must achieve an EPC rating of at least C by 2028, with all rental properties expected to follow suit by 2030. Importantly, landlords should note that there is a spending cap set at £15,000 per property for improvements, which could be reduced to £10,000 depending on factors such as local rent levels or council tax band.

Landlords have genuine concerns about investing prematurely

However, some landlords have expressed concern about investing in these improvements prematurely, fearing that early expenditures might not count towards the proposed financial cap. This hesitation is understandable, particularly for landlords with properties in lower-value areas where significant capital growth isn't guaranteed.

For instance, spending £15,000 on improvements to a property valued at £80,000 may feel daunting.

Despite these understandable concerns, delaying improvements could lead to serious practical challenges. As the compliance deadlines approach, increased demand for skilled tradespeople and materials may cause shortages or higher costs, making it difficult or even impossible to meet the regulatory requirements in time.

Letting agents are also likely to prioritise working with landlords who proactively meet these energy efficiency standards. Non-compliant properties risk becoming unattractive to reputable agents, potentially leaving landlords with fewer options and limited market access.

Given these considerations, landlords are advised to seek expert guidance now. Discussing your property’s current EPC rating, identifying cost-effective improvements, and planning how best to finance these upgrades could save significant future stress and expense.

As your local letting agent with a strong track record in supporting landlords through all manner of legislation changes, we are here to help. We know there is a lot to consider, and much work to do. If you want guidance from a trusted source who puts landlords first, get in touch with Trading Places, and we’ll be more than happy to assist you.

Staying ahead in the Leytonstone rental market

If you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.

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