EPC Rating Changes Impact Landlords

The government is introducing major EPC rating changes, marking the most significant overhaul to the system in years. With the new methodology, known as RdSAP 10, coming into force from 15th June, landlords across England and Wales could see their property ratings change, for better or worse.

Let’s unpack what these changes mean, why they matter, and what property owners should do next.

A Brief Recap: What Is an EPC?

Energy Performance Certificates have been part of the UK property landscape since 2007, originally applying to homes with four bedrooms or more. By 2008, EPCs became mandatory for all properties being sold or rented.

These certificates rate properties from A (most energy efficient) to G (least efficient), offering a quick insight into how much it might cost to heat and run a home – and how environmentally friendly it is. With energy bills soaring and sustainability becoming a higher priority for both tenants and buyers, EPCs are now a critical component of a property’s appeal and value.

What’s Changing and Why? – EPC Rating Changes

The upcoming RdSAP 10 methodology refines EPC calculations to reflect real-world conditions more accurately. Under the new system, energy assessors will go beyond general assumptions and instead draw on detailed data.

Key changes include:

• Detailed assessment of windows – not just whether they’re single or double-glazed, but also the type and condition.
• Specifics on heating systems – using model numbers and manufacturer specifications instead of standardised assumptions.
• Smart controls – the presence of smart thermostats or zoned heating will be considered.
• Evidence required for upgrades  if energy-saving improvements have been made, property owners must provide documentation. Without it, assessors may default to less favourable assumptions.

These updates reflect a growing demand for more transparent and accurate energy assessments, aligning EPCs with modern standards of energy use and sustainability.

How Might These Changes Affect You?

Better Ratings for Flats and Mid-Terrace Homes?

RdSAP 10 introduces a promising shift by changing how thermal performance is calculated, especially in shared-wall properties. Flats, maisonettes, and mid-terrace homes could receive a ratings boost under the new rules.

For example, properties above other flats will no longer be penalised for heat loss through the floor, as it’s now assumed that the lower unit provides insulation. This could make a noticeable difference for landlords with property portfolios focused on apartment blocks or city centre developments.

The Four Key Factors in the New Scoring System

Under the revised system, a property’s EPC score will hinge on:

• Building fabric: Insulation, window condition, and overall thermal performance.
• Heating technology: Efficiency, control systems, and age of the boiler.
• Smart readiness: Inclusion of devices like smart meters and thermostats.
• Energy costs: How expensive the property is to heat, light, and power.

Owners should view these categories as strategic areas to invest in for maximum EPC improvement.

Why This Matters More Than Ever: EPC Rating Changes

Tenant Demand and Buy-to-Let Market Pressures

Tenants today are increasingly energy-conscious, not just for environmental reasons but because of rising energy costs. EPC ratings are among the top considerations when renting, meaning properties with low ratings may face longer void periods or the need for rental discounts.

From the landlord’s perspective, properties rated D or below are already coming under scrutiny, with proposed future legislation suggesting a minimum C rating may become mandatory for rentals.

Green Mortgages and Investment Strategy

Banks and building societies are also playing their part. Many lenders are offering “green mortgage” incentives for buyers purchasing energy-efficient homes or owners upgrading existing stock. This often translates into better interest rates or cashback deals for those with EPC ratings of A or B.

Landlords who fail to keep up could face tighter lending conditions or diminished asset values.

The New-Build Advantage: EPC Rating Changes

When it comes to energy efficiency, new-builds continue to outperform older housing stock. Around 87% of newly built homes achieve an EPC rating of A or B, compared to just 5% of existing properties. This stark contrast is drawing buyers and investors towards newer developments, where compliance with future regulations is less of a concern.

The implication is clear: unless landlords take steps to future-proof their properties, they risk falling behind in both rental competitiveness and resale value.

What Landlords Should Do Now

With the new RdSAP 10 method just around the corner, here are practical steps landlords should consider:

• Review your property’s current EPC: If your rating is borderline, it’s worth taking action now to avoid a drop under the new rules.
• Gather documentation: Ensure you can prove any energy-efficient upgrades with receipts, certificates, or installer documentation.
• Consider smart tech: Even minor upgrades like programmable thermostats can make a difference under the updated methodology.
• Seek professional advice and speak to an energy assessor to understand how the new standards may impact your property.

Final Thoughts

The EPC shake-up signals a clear shift in the direction UK housing is taking, beyond just a bureaucratic change. Accuracy, accountability, and energy performance are now integral to the value and marketability of property.

For landlords, this isn’t a moment to be caught off guard. Whether you’re managing a single rental or a broad portfolio, now is the time to act. Make smart, strategic upgrades today to save money and cut your carbon footprint. As a result, your properties remain attractive.