Buy-to-let investors are increasingly buying energy efficient homes, but with new EPC rating rules not set in stone, are landlords jumping the gun?

This is Money are running an article on landlords trying to guess what EPC rating rental properties will be.

The article can be seen here, and says:

  • So far in 2022 the share of homes bought by investors with an EPC of A-C is 50%
  • This is up from 39% last year and 33% in 2020
  • At present all rental properties in England and Wales need an E rating to be let
  • The Government is considering upping this requirement to a C from 2025 
  • However, the proposed requirement has not yet been confirmed or made law 

Increasing numbers of buy-to-let investors are buying energy efficient homes ahead of potential changes to EPC legislation.

Half of properties bought by landlords so far in 2022 came with an EPC rating of between A and C, according to estate agent Hamptons, up from 39 per cent in 2021 and 33 per cent in 2020.

At present, all rental properties in England and Wales need to have an EPC of at least E in order to be let, unless they are exempt.

EPC is a rating scheme which bands properties between A and G, with an A rating being the most energy efficient and G the least efficient.

However, in line with its ambition to reach net zero carbon emissions by 2050, the Government is considering upping this requirement to a C rating for all new tenancies by 2025, and for all existing tenancies by 2028.



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