Hello Readers,
It’s like a merry-go-round this EPC topic and potential hot potato as more ministers weigh in with their thoughts.
I’ve just been reading how Housing Minister Baroness Scott of Bybrook has given peers the assurance that new EPC regulations for the private rental sector will in fact be brought in by 2028.
I’m not going to repeat the proposed changes as I think we are all familiar with them, however here’s a reminder of the timeline:
- January 2018: EPC legislation changes affecting EVERY rental property are imminent (bringing in EPC E minimum)
- October 2020: Government Announces EPC U-Turn (proposing an EPC C and then B minimum)
- April 30 2023: Landlords May Be Given An Extra Three Years To Meet Proposed EPC Requirements
- May 23 2023: New Minimum EPC Grading Brought In For Commercial Premises
- July 2023: Michael Gove made comments regarding a delay to the implementation of the changes
I have one comment on behalf of landlords here and that is how ‘confusion reigns’. With so many conflicting views, so much noise and such a large investment required, the lack of a final decision is infuriating for landlords.
With regards to a final decision, Energy Minister Andrew Bowie has made comment that there would be ‘many more months’ before the final details of proposals are released and I’m sure you will agree with me that more delay is, frankly, unacceptable.
Again, landlords are left in limbo!
With costs from £8k and a single let making around £300 per month in profit, upgrade works will take over two years to be paid for. That’s two years with no income for retirees who rely on the cashflow for their pension; even for properties within a limited company it’s no wonder more landlords than ever are selling up!
For landlords who choose to invest and upgrade however, it’s important to remember that works will eventually be paid for, however the extended timeframe in covering the cost is certainly infuriating.
I don’t doubt that those who choose to keep their hand in the game will, however, benefit from increased demand and increased rents over the coming years as the shortage of stock undoubtedly is yet to get worse!
Hasan
