New energy-efficiency requirements for rented accommodation in the UK have now come into force and will mean further capital expenditure for some buy-to-let (BTL) landlords, according to Fitch Ratings.

The UK's 'Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015' will require properties rented out in the private rented sector to have a minimum Energy Performance Certificate (EPC) rating of 'E'.

The regulations came into force for new lets and renewals of tenancies from 1 April 2018 and for all existing tenancies on 1 April 2020. It will be unlawful to let a property that breaches the requirement for a minimum E rating, unless there is an applicable exemption. EPC ratings are graded A (most efficient) to G (least efficient).

Fitch Ratings stated: “During 2017, just over 1.2m EPCs were lodged on the national register covering all UK domestic properties - this includes sales, lets and new dwellings. Of these, about 5% were rated F or G. There is no available data to confirm the proportion of let properties that did not meet the E standard, but we believe it would be similar.