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EPC reforms - thoughts from property experts?

Journalist: Tom Haynes, Daily Telegraph

ended 11. January 2025

Hello!

The Government launched a consultation into EPC reforms in December. https://www.gov.uk/government/consultations/reforms-to-the-energy-performance-of-buildings-regime/reforms-to-the-energy-performance-of-buildings-regime

Now that we've all had a month to review the documents and what they mean, I have a few questions I'd like to ask property investors/those who represent them.

Are you concerned that a shifting of metrics will catch some landlords out? The current system rewards low bills above all else, but reformed criteria would prioritise greener heating and “smart readiness”. 

At the same time, landlords will be banned from letting properties that don't achieve an EPC C-rating. Should the criteria change, are there concerns that landlords who invested in meeting efficiency targets might see themselves downgraded once the goalposts shift? What other concerns do homeowners have regarding the EPC reforms?

Please respond this week!

Tom.

3 responses from the Newspage community

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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
The EPC reforms have sparked important conversations among property stakeholders—are we steering towards a greener future or simply shifting the challenge?

With "smart readiness" and greener heating taking the spotlight over "low bills," many landlords are asking if yesterday's investments will meet tomorrow's standards. For those who worked hard to comply with current EPC benchmarks, does this feel like the goalposts are shifting? And with the upcoming C-rating requirement, how prepared are landlords for this evolving regulatory landscape?

We’re eager to hear your thoughts—do these reforms mark progress, or are they adding new layers of complexity? Let’s shed light on how property owners are planning to adapt.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Energy Performance Certificates (EPCs) are going to become a very important factor in the coming years; both in terms of rental property having a minimum level requirement and the growing availability of cheaper mortgage deals and increased affordability for energy efficient homes. The concern in the past has been over the consistency of EPCs, with different assessors seeming to come up with different results; imagine living on a street where your home is assessed as a D but the very same house next door gets a C and so access to cheaper mortgage funds, simply because each used a different person to do the assessment. The Royal Institute of Chartered Surveyors (RICS) have highlighted this issue previously and many in the industry have spoken about tightening up the current system to help deliver a more consistent and reliable result from the various assessors across the UK.
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Oliver Cotterell
Managing Director at Windsor Hill Mortgages and Cotterell & Cotterell Commercial Finance
The Government’s EPC reforms raise key concerns for landlords and investors. Shifting metrics from low bills to greener heating and “smart readiness” could mean properties meeting current targets are downgraded, forcing landlords into unexpected costs.

For lower-value housing, this challenge is greater, as retrofit costs could outweigh the property’s value, particularly in low value areas. High taxes on landlords exacerbate the issue, with many already operating at a loss. The cost of upgrades to meet an EPC C-rating could leave some unable to afford necessary works, potentially forcing sales or exits from the market.

Balancing sustainability goals with affordability is critical to prevent negative impacts on housing supply and affordability.