Landlords could be forced to renew EPCs more often

Proposals in a government consultation could force landlords to update their EPCs every time a tenant renews their tenancy agreement, even if it’s with the same tenant.

Under current rules, EPCs are valid for ten years, and when they expire, a new one isn’t needed unless you’re entering a new tenancy with new tenants or selling the property.

Following on from yesterday’s article about the proposed EPC changes, we delve deeper into what the proposed changes to EPC validity could mean for landlords.

Update EPCs more frequently

In a consultation on EPCs, the government suggests forcing landlords to update EPCs more frequently.

The consultation says: “We are proposing to introduce for private rental properties a new trigger point where an EPC is required for when the current one expires.”

The government suggests that updating an EPC would be similar to updating a gas safety certificate, which is required every 12 months.

“This measure would also support energy performance improvements in PRS buildings that are subject to minimum energy efficiency standards (MEES). It would be similar to other requirements on landlords throughout tenancies, such as valid building insurance or gas safety certificates, and can be managed through letting agents where appropriate.

“Close working between MEES enforcement bodies and EPC enforcement bodies can assist with managing overall compliance rates”.

Valid EPC throughout a tenancy

Behind the government’s push to require a valid EPC throughout a tenancy, the consultation says the average tenant in the private rented sector stays for 4.3 years.

The government argues this means many long-term tenants could be living in properties without an up-to-date EPC.

The consultation says: “In addition, even if a tenant is in a property for less than the average period, the EPC for that property could still expire while they were living there.

“The presence of a valid EPC throughout a tenancy, rather than solely at the point of marketing, would ensure landlords and tenants are equipped with accurate and up-to-date information. This could also help improve compliance with government policies and commitments such as MEES and ensure that properties remain attractive to existing and potential tenants.”

The government claims that reducing the validity period of EPCs could allow building upgrades, such as fabric changes, to be captured more frequently.

The consultation says this would provide prospective buyers and tenants with more accurate and up-to-date information to inform decision making which may directly impact their cost of living.

Landlords will incur a small increase in costs

The government does admit that reducing the validity period would greatly impact private landlords.

However, claims landlords will only incur a “small increase in costs from regular EPCs.”

The government recently announced all private rented sector properties will need to meet EPC C targets by 2030 and 2028 for new tenancies.

Numerous articles on Property118 have revealed the cost of upgrading a property to a C could cost thousands of pounds, and if the validity of EPCs changes, this could mean landlords will have to spend even more on upgrades just to stay compliant.

The government has said that if they reduce the validity period of EPCs, there are several ways they could introduce the change.

The consultation outlines different approaches, such as allowing existing EPCs to remain valid until they naturally expire, immediately invalidating all 10-year EPCs when the new rules come in, or introducing a two-year transition period before the new validity rules take full effect.

Stay tuned for more articles on the EPC consultation where we will delve deeper into the new metrics that will measure EPCs.