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No final decision on EPC requirements for short-term holiday lets

No final decision on EPC requirements for short-term holiday lets

The UK government has yet to make a final decision on whether short-term holiday lets will be subject to the proposed Energy Performance Certificate (EPC) minimum standards. This uncertainty is significant for landlords operating in the holiday let market, as it affects future compliance obligations and investment planning.

While the government has proposed that all private rented properties meet an EPC rating of C by 2030 (and by 2028 for new tenancies), the inclusion of short-term holiday lets within this framework remains under consideration. Landlords should stay informed as the government balances environmental targets with the needs of the tourism sector.

Background on EPC requirements for private rented properties

The government’s current proposals aim to improve the energy efficiency of the private rented sector by requiring properties to achieve an EPC rating of C or above. This is part of a broader strategy to reduce carbon emissions and help the UK meet its net zero goals.

The deadlines set are 2028 for new tenancies and 2030 for all existing tenancies, reflecting a phased approach to allow landlords time to make necessary improvements. These measures are expected to affect a wide range of rental properties, with exemptions available in certain circumstances to ensure fairness and proportionality.

Uncertainty over short-term holiday lets

Short-term holiday lets, which are often let for periods shorter than six months, currently fall into a grey area regarding EPC regulations. Liberal Democrat MP Charlie Maynard recently questioned the government on the potential impact of extending EPC requirements to these properties.

In response, Labour MP Michael Shanks confirmed that the government’s recent consultation sought views on whether short-term lets should be included in the EPC C target proposals. However, no final decisions have been made at this stage.

Mr Shanks emphasised that the government intends to maintain a range of exemptions to ensure that any required investment is fair and proportionate. The government is committed to an evidence-based approach that balances the need to support tourism with the imperative to meet net zero targets.

Implications for landlords and agents

For landlords and letting agents managing short-term holiday lets, the current lack of clarity means it is important to monitor developments closely. Should the government decide to include holiday lets within the EPC C requirements, landlords may need to invest in energy efficiency improvements sooner than anticipated.

Understanding the potential financial and operational impact is crucial. Energy efficiency upgrades can involve costs related to insulation, heating systems, windows, and other measures. Planning ahead can help landlords budget and schedule works to minimise disruption to their rental income.

Furthermore, agents advising landlords should be prepared to guide clients through any changes in legislation and compliance requirements. Staying informed about government announcements and consultation outcomes will be essential.

Next steps and government consultation

The government is expected to publish its findings from the EPC consultation in due course. This report will clarify the position on short-term holiday lets and may outline any exemptions or phased implementation plans.

Landlords and agents should watch for this update to understand their future obligations and to ensure compliance with energy efficiency standards.

Additional support for landlords

In related news, the Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. The Hub will include legal, trades, insurance, financial, mortgage, tenant screening, and other relevant services.

Service providers interested in joining the Trusted Partners Hub can register their interest at the Landlord Association website. This initiative aims to streamline access to trusted services, helping landlords manage their properties more effectively in an evolving regulatory environment.

Source: www.property118.com

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