Most privately rented properties in England and Wales need an EPC rating of at least E, unless a valid exemption applies. Looking ahead, the governmenthas confirmed plans to raise minimum standards to the equivalent of EPC C by 1st October 2030.
For some landlords, this may raise concerns about the cost of future improvement works. But before assuming major upgrades are needed, it could be worth checking whether your current EPC rating still reflects the property accurately.
Your EPC may not show the full picture
An Energy Performance Certificate (EPC) can be valid for up to 10 years. This means an older certificate may not reflect improvements made since it was issued.
In some cases, assessors may also rely on assumptions if they cannot check certain parts of the property. This could include insulation, glazing, heating controls or other energy efficiency features.
Case study
Recently, one landlord found that their property was already able to achieve a higher EPC band of C once the property was reassessed. The previous certificate of D rating had been completed some time ago, and certain parts of the property had either been missed or assumed. After a relatively simple check, the assessors found that cavity wall insulation was already in place and the boiler had been replaced, and the rating improved by one grade without the landlord first having to carry out major works.
This will not be the case for every property. But it shows why checking the existing certificate, and making sure the assessor has the right evidence, can be a useful first step before committing to larger upgrades.
Check before you spend
- When was the EPC last completed?
- Have any improvements been made since?
- Is there evidence of insulation, glazing, heating or lighting upgrades?
- Could simple changes help improve the rating?
- Could the property’s EPC position affect future mortgage plans?
While costs vary by assessor, property size and location, a domestic EPC assessment is often quoted at around £60 to £120.* This is not a guarantee that the rating will improve, but it may be a relatively low-cost first step before landlords commit to larger improvement works.
Why this matters for your mortgage
EPC ratings are not only about compliance. They also form part of wider mortgage planning.
Some buy to let lenders offer green mortgage products for properties with stronger EPC ratings, and some may offer incentives such as cashback for completing qualifying improvement works.
There are also green products available from some commercial lenders for business premises.
Not every landlord will qualify for a green mortgage, and it may not always be the most suitable option. But knowing your current EPC position can help you have a more informed conversation if you are thinking about remortgaging, refinancing to fund improvements or reviewing your wider portfolio.
Commercial Trust can help landlords explore buy to let and commercial mortgage options, including more specialist cases where EPC ratings, property type, planned works or portfolio structure may affect the options available.
Contact our advisors today to discuss your mortgage options.