NRLA warns that landlords can’t afford EPC upgrades
4 months ago | 2 comments
No final decision on EPC requirements for short-term holiday lets
12:01 AM, 31st December 2025, 4 months ago
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The government has said no final decision has been made over whether short-term holiday lets will be included in energy performance certificate (EPC) targets.
The government has proposed, but not yet made law all private rented properties will need to meet EPC C targets by 2030 and 2028 for new tenancies.
The government claim they are committed to a balance of “supporting tourism and reaching net zero goals”.
No final decisions have been made
Liberal Democrat MP Charlie Maynard asked the government: “What assessment they have made of the potential impact of changes to requirements for EPC certificates on properties used as short term holiday lets.”
In response, Labour MP Michael Shanks, said: “The recent consultation on increasing minimum energy efficiency standards in the domestic private rented sector sought views on whether short-term lets should be included in the scope of our proposals for rented homes to achieve Energy Performance Certificate C or equivalent by 2030, to help ensure a consistent standard across all private rented properties.
“No final decisions have been made, and the government has proposed to maintain a range of exemptions available to landlords to ensure that required investment is fair and proportionate.
“The government remains committed to taking an evidence-based approach and will consider the balance between supporting tourism and reaching our net zero goals.”
The government is expected to release its findings from the EPC consultation in due course.
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Member Since August 2016 - Comments: 1190
10:15 AM, 31st December 2025, About 4 months ago
The more meaningful question should be when will minimum EPC standards be applied to social housing.
Member Since January 2024 - Comments: 349
10:51 AM, 31st December 2025, About 4 months ago
“The government is expected to release its findings from the EPC consultation in due course.”
Well, there’s no rush. We’ve up to 5 years to train up sufficient workers to carry out the work, advise property owners on what the actual rules, etc will be, get all the work carried out, arrange for more court time for cases where more insulation equals more property damage and increased health risks, arrange new laws to force freeholders to allow EPC work on leasehold properties, etc.
I can only assume that they know that they will not be in power, so it doesn’t matter.
Luckily, I will be out of the property market in 5 years and there will be at least 2 fewer properties on the rental market (a D flat in an ex council block and an E detached house, both of which have been happily occupied by tenants with their current EPC ratings!!).
Member Since March 2023 - Comments: 1506
5:59 PM, 31st December 2025, About 4 months ago
So its 2026 in a few hours and EPC requirements haven’t become law yet. Doesn’t leave a lot of time to arrange upgrades as I won’t do anything until everything has been agreed.
Member Since January 2025 - Comments: 57
12:58 AM, 2nd January 2026, About 4 months ago
Reply to the comment left by GlanACC at 31/12/2025 – 17:59
The problem is that if you have a BTL mortgage then they won’t lend on a property below C
5 year deals have already been withdrawn for D and below
My fixed mortgage rate ends October 2027 and I’m a D, I bet even if it isn’t law by then I won’t be able to get a new BTL mortgage fixed deal from another provider
Member Since March 2023 - Comments: 1506
7:05 AM, 2nd January 2026, About 4 months ago
Reply to the comment left by Billy Gunn at 02/01/2026 – 00:58
Time to sell up and invest in something else.
Or if you have several properties as I did (13 sold, 5 left to go), then sell enough to clear the mortgage on the remainder making you mortgage free. You are then in a much better worry free position for the next few years.
Member Since January 2025 - Comments: 57
4:12 PM, 2nd January 2026, About 4 months ago
Reply to the comment left by GlanACC at 02/01/2026 – 07:05
Unfortunately if I sell up then the money released from the property after CGT wouldn’t get anywhere near the returns I am getting now.
I only own the one rental property
Member Since January 2024 - Comments: 349
5:10 PM, 2nd January 2026, About 4 months ago
Reply to the comment left by Billy Gunn at 02/01/2026 – 16:12
It all depends on your age and risk profile – if you do not have a mortgage and can afford to lose the income if you spend a year getting your property back, and can afford to pay any fines that the LA might decide to impose, etc then maybe it is worth retaining the property.
It is, however, likely to be subject to IHT, so my preference is to move things around now, so that my estate doesn’t get a 40% hair cut when I shuffle off my mortal coil!
Member Since March 2023 - Comments: 1506
5:23 PM, 2nd January 2026, About 4 months ago
Reply to the comment left by Ryan Stevens at 02/01/2026 – 17:10
Exactly what I have been doing. My LTD company has 3 properties (mortgage free) in it. When I croak it it will go to my wife IHT free. She can then transfer the shares to my 2 kids and it is likely she will last another 7 years so that will be IHT free as well. Could transfer the shares now but I would lose the right to take a dividend, which would not be a big issue. So will see how 2026 plays out first
Member Since January 2024 - Comments: 349
5:53 PM, 2nd January 2026, About 4 months ago
Reply to the comment left by GlanACC at 02/01/2026 – 17:23
If your company is an investment company (likely) then share transfers to children are treated as disposals at market value for CGT purposes, so there could be a CGT charge even if no consideration is received.
If it is likely that you will predecease your wife, it is generally more tax-efficient for you to retain the shares and leave them to her under your will. That transfer would be IHT-free due to the spouse exemption, and the shares would be rebased to market value at probate for CGT purposes.
When your wife subsequently gifts the shares to the children, any CGT exposure should be minimal (assuming no significant post-probate growth), and provided she survives seven years, there should be no IHT on the transfer.
Member Since January 2025 - Comments: 57
11:57 PM, 2nd January 2026, About 4 months ago
Reply to the comment left by Ryan Stevens at 02/01/2026 – 17:10
It won’t be subject to IHT as the property is only worth currently around 140-150K
If I sold it though then I would have to pay some CGT
I’m only 5 points off a C so will probably do what I need to do to get to a C then I’ll be good for 10 years