Energy Performance Certificates (EPCs) for listed buildings remain a complex and often debated issue among landlords and letting agents. The challenge lies in balancing heritage preservation with energy efficiency requirements, particularly as the minimum EPC rating for rented properties is set at grade E.

The EPC dilemma for listed buildings

Many landlords of listed properties face difficulties in achieving the required EPC standards without making alterations that are prohibited due to the building’s protected status. The government’s minimum energy efficiency standard for privately rented homes currently requires an EPC rating of at least E. While this is generally achievable, reaching the higher EPC grade C often demands substantial modifications that are not permitted on listed buildings.

This situation has led to confusion and frustration, with some landlords questioning whether EPCs are necessary for listed properties at all. Letting agents frequently insist on obtaining EPCs to comply with regulations, but landlords worry that this may result in unnecessary expenditure if exemptions apply.

Government response and heritage sector concerns

The government has acknowledged these concerns in its consultation on reforms to the Energy Performance of Buildings regime. A partial government response highlights the need for flexibility in regulatory approaches for the private rented sector, especially where retrofit measures may not be suitable for heritage properties.

Specifically, the government states: “We recognise the concerns raised from the heritage sector about EPC recommendations not being applicable to their dwellings, and will ensure that any PRS MEES regulatory approaches provide sufficient flexibility for properties where certain retrofit might not be suitable, with further detail included in the ‘Improving the energy performance of privately rented homes’ government response.”

This indicates an intention to consider the unique challenges of listed buildings within future policy updates, although precise details and exemptions remain to be clarified.

What this means for landlords

For landlords of listed buildings, the current position is somewhat ambiguous. While the minimum EPC requirement is grade E, achieving this rating without breaching heritage preservation rules can be challenging. Landlords should be aware that their letting agents may require an EPC to let the property, but it is worth investigating whether exemptions apply to avoid unnecessary certification costs.

Given the government’s recognition of the issue and the promise of regulatory flexibility, landlords should stay informed about forthcoming guidance and potential changes in the regulations. Engaging with professional advice and monitoring government updates will be essential to ensure compliance without compromising the integrity of listed buildings.

Source: Based on reporting from Property118

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