From 1 April, the rules on EPC ratings are changing so it’s important that you and your BTL clients know in advance how it will affect you.

What’s changing?

It will be against the law in England and Wales for landlords to grant a new tenancy to either new or existing tenants if their property doesn’t have an Energy Performance Certificate rating of ‘E’ or above.

How will it affect new clients?

We won’t lend on properties that fall below an ‘E’ rating unless they have a valid exemption. From 15 March, we’ll be updating our lending policy to reflect this.

How will it affect existing clients?

If a privately rented property falls below the minimum EPC rating, the landlord will need to carry out ‘relevant energy efficiency improvements’ to bring it up to an ‘E’ or above. They may be able to obtain Green Deal finance to do this or the property may qualify for an exemption.

For more information on the new EPC rules:

• See the Government’s full guidance document on the changes;
• Check an existing EPC rating here;
• Register an exemption.