Landlords EPC C Upgrade 2025
Understand the current situation regarding the government’s Energy Performance of Buildings (No. 2) Bill currently going through Parliament. Understand why a heat pump might be the best solution for your property and why now is the right time to sort it out.
What does the bill say
https://bills.parliament.uk/bills/3036The Secretary of State must amend the Energy Efficiency (Private Rented 15 Property) (England and Wales) Regulations 2015 (SI 2015/962) to require that, subject to subsection (2)—
(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028 where practical, cost-effective and affordable as defined under section 1(4).
Find the full bill here
WHAT ARE THE CURRENT REGULATIONS
Since the 1st of October 2008 landlords must have a valid EPC rated at EPC Band E or above to provide to prospective tenants.
UNCertainty vs planning ahead
Although there is still uncertainty on what the final rules will be, the fact remains that sooner or later the standards will need to be improved. Landlords are already being advised to start looking at upgrading, as the closer we get to the deadline the higher demand there will be for renewables and insulation solutions.
EPC BAND D, EXAMPLE
The average EPC rating is the UK is D. For example, we have taken a property with EPC 55, which is right on the D-E threshold. Following an EPC inspection, recommendations are made to achieve a higher potential rating.
A summary of the recommendations for this property:
Internal or External Wall Insulation
- Price: £10,000
- Yearly saving: £682
- EPC Increase: 8
Solar Water Heating
- Price: £5,000
- Yearly saving: £109
- EPC Increase: 1
Floor Insulation
- Price: £1,200
- Yearly saving: £188
- EPC Increase: 2
Solar Panels, 2.5kWp
- Price: £5,500
- Yearly saving: £659
- EPC Increase: 7
Replace boiler with new boiler
- Price: £3,500
- Yearly saving: £682
- EPC Increase: 3
Frustratingly, EPC recommendations don’t yet recommend air source heat pumps, which they are working to change. In the mean-time, we give you a rough idea. EPC scores are based on the cost of heating your home, which is why the higher the ‘yearly saving’ the more impact it has to the EPC score.
HOW A HEAT PUMP CHANGES YOUR EPC
The calculations behind the EPC rating are not based purely on efficiency, they’re based on the cost of heating and powering your home. That means the cheaper the running costs, the better the rating.
It is therefore important to get a detailed survey done of your property. The best start is to complete our market leading initial assessment to understand your savings.
Landlords EPC C Upgrade
The example we gave above is a property we installed a heat pump on. The comparable data on it is as follows, showing you how a heat pump can be the best solution to improve your EPC.
AURORA II 10kW HEAT PUMP
- Price: £5,853
- Yearly saving: £671*
- EPC Increase: 8**
Comparison:
- Heat Pump: £731.63 Cost/EPC
- Wall Insulation: £1,250 Cost/EPC
- Solar Panels: £785.71 Cost/EPC
As can be seen here the heat pump is the most cost effective solution in this case. It is important that this varies property to property and again we encourage you to complete our survey for accurate results for your home’s specific circumstances.
INCREASED PROPERTY VALUE:
A WWF report, in conjunction with Scottish Power (Better Homes, Cooler Planet) has shown a heat pump could add between 1.7% and 3.0% to the value of your home, or £5,015 (1.7%) to £8,850 (3.0%) based on the Office for National Statistics UK average house price of £295,000 in November 2022.
The Better Homes, Cooler Planet report also estimated that by installing a heat pump in your home you could reduce your heating costs by around 37%. or £1,290.90 on average.
The report also highlighted a heat pump outperforming other forms of renewables, such as electric vehicle charging or solar panels.
…
According to Knight Frank’s Property Market Insights, improving your EPC rating can improve your home value by a further 20%.
…
Additionally, as Adlår’s heat pumps can facilitate cooling, your property value could increase by as much as 2.5%.
OTHER UPGRADES @ 0% VAT
Installing a heat pump is covered by the governments Energy-Saving Materials and Heating Equipment Vat Notice (708/6)
This means, within the scope of the legislation, any work we conduct onsite in relation to installing the heat pump is covered under the 0% VAT rate. This includes radiators or underfloor heating and any material upgrades, such as insulation, that we might do as part of the works.
RENTAL PROPERTY PROMOTION:
WE SUPPORT YOU WITH
1 NIGHT AWAY
The government has launched an official consultation that require rental properties to be EPC C by 2025, or the landlords will face hefty fines.
This is a serious challenge for landlords. Insulation is one solution, but so are renewables, and they can often be the cheaper solution.
We assist you in this by giving your renters 1 free night in accommodation to avoid any disruption during the install. Adlår aims to have installs done in 1.5 days so we ensure your renters aren’t affected by the change.
