EPC grounds for eviction

[kanrent]

beginning 2025, all newly rented properties will be required to have a certification rating of C or above. Existing tenancies will have until 2028 to comply. 

If I'm unable to raise My EPC to a C for my existing tenant because of financial or practical reasons would this be grounds for eviction

Don't want to beak the law do we 

[Richlist]

No, not until 2028 when it applies to existing tenancies. You've got 6 or 7 years before your existing tenancy requires the new EPC rating and a lot can happen in that time.

Perhaps you need to view any costs required to meet the new rules as a necessary expense involved with letting......it is tax deductable. If you don't want to or cant meet the requirements you are shooting yourself in the foot. You will have to stop letting the property and most likely take a big drop in the price when you sell it.

In your shoes I'd plan ahead. If you really can't meet the cost of improving the EPC rating then sell asap before the low rating has a chance to more seriously affect the sale value.

[kanrent]

1 hour ago, Richlist said:

No, not until 2028 when it applies to existing tenancies. You've got 6 or 7 years before your existing tenancy requires the new EPC rating and a lot can happen in that time.

Perhaps you need to view any costs required to meet the new rules as a necessary expense involved with letting......it is tax deductable. If you don't want to or cant meet the requirements you are shooting yourself in the foot. You will have to stop letting the property and most likely take a big drop in the price when you sell it.

In your shoes I'd plan ahead. If you really can't meet the cost of improving the EPC rating then sell asap before the low rating has a chance to more seriously affect the sale value.

It is tax deductabe but only as a capital improvement not a repair is that correct? 

So can only be used to reduce capital gains tax when I sell

[Richlist]

Correct.....but take it from me, when the time comes to sell, any ......and I mean ANY.....opportunity to reduce your liability to pay CGT will be more than welcome. 

For some people (depending on personal circumstances) getting tax relief on paying CGT at 28% is preferable to income tax relief at 20%.

You can always consider borrowing to fund the works......interest rates are so low it could be your best choice.

[Grampa]

Dont forget BTL lenders will refuse to lend (even now) unless the EPC rating reaches a certain level. So with a low rating it will reduce the amount of potential buyers.

I had to pull out of a purchase with a low EPC rating a year ago because I couldn't get any BTL finance on it. The property was liveable but I was planning to renovate anyway which the lender knew above and I was prepared to give an undertaking to do so within 4 months but still had to withdraw.  

[Nev M]

If you replace equipment like a boiler due to it not working then i think you can claim on yearly tax bill as long a it is classified as like for like e.g. not an improvement to the property. Interesting though as if you need the boiler replaced to meet the new EPC regs can you not argue the point that a replacement is necessary requirement as long as you don't upgrade its functionality.