Leeds estate agents says green rules for rental properties causing widespread confusion

The Government plans to make rental properties more eco-friendly by enforcing a minimum energy performance certificate (EPC) rating of C

This follows a recent energy performance consultation by the Government, when it announced that it is considering making the C rating the minimum requirement for all new tenancies by 2025, and for all existing tenancies by 2028, in England and Wales.

The changes are now part of the Minimum Energy Performance of Buildings Bill, which is currently going through parliament.

However, estate agent HOP, which has branches in the city centre, Pudsey and Horsforth, is urging caution.

HOP, which manages a vast portfolio of residential properties, aimed at both the professional and student markets throughout Leeds, is currently advising both new and existing landlords to seek expert advice and carefully consider a property’s EPC before purchasing any property.

Luke Gidney, managing director at HOP, explained: “The EPC rating scheme has seven different bands, with G being the least energy efficient and A the most efficient.

"Currently, rental properties in England and Wales need to have an EPC of at least E to be let, unless they are exempt, but the Government is considering increasing this to C, as part of its ambition to hit net zero carbon emissions.

“However, a surprising number of new and existing landlords are unaware that these changes are on the horizon. Some estate agents avoid mentioning it in order to secure a sale, but we work hard to make sure that investors fully understand what they’re buying.

“We’re already advising a number of landlords on steps to improve their ratings and have decided to launch a comprehensive EPC Consultation Service to help navigate the proposed changes.

"Several members of our team are training to be official EPC assessors, so we can provide tailored and strategic advice on the best ways to improve a property's energy performance.

“It’s also important to remember that the Minimum Energy Performance of Buildings Bill still has a long way to go before it becomes law, and it could still be thrown out, and this is part of the reason why there’s so much uncertainty and confusion around it.

“In many cases, turning a property into a C rated home could be as simple as improving the insulation or installing a more efficient boiler, but in some older properties it could require significant investment and work.

"It’s therefore important that anyone investing in property now, as well as existing landlords, fully understand the EPC rating that’s put in front of them and seek professional advice.”

Luke continued: “Despite the possibility of the new legislation and the impact it may have on some properties, Leeds remains a very attractive location for investors.

"The city naturally offers better value for money than many other parts of the UK with attractive yields, against the backdrop of a strong local economy and high demand for quality rental property from both professionals and students.

“There’s also a good range of housing stock, with modern apartments and new builds always proving popular for investors and these are often built with a B or C rating.

"However, often it’s the older houses and traditional Leeds terraces in the sought-after suburbs surrounding the city centre, that offer the best yields, but these are generally less energy efficient than new stock.

“Investors buying these types of properties definitely need to consider how much it could cost if the property had to achieve a C rating and plan ahead for the possibility.”

The Minimum Energy Performance of Buildings Bill is a Private Members' Bill that was presented to Parliament on Tuesday, July 20, 2021.

It proposes that all domestic properties achieve at least EPC Band C by 2035, where practical, cost-effective and affordable.

Privately rented properties would be required to have an be at least EPC Band C from December 31, 2028, - again where practical, cost-effective and affordable.

New tenancies would be required to have an energy efficiency performance of at least EPC Band C from December 31, 2025.

It also calls for a Future Homes Standard that will require that all homes built from January 1, 2025 to be zero carbon ready.

It has now reached the stage of second reading which is scheduled to take place on Friday May 6 of this year.

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