The PEB certifcate assesses the energy performance of buildings. It is a document that informs potential buyers or tenants about the energy efficiency of a property. In Wallonia, it must be presented when residential buildings are sold or rented out.
The certificate always indicates a certain energy score based on the quantity of kWh per square metre per year, and is presented with an energy class ranging from A+ to F. This score must always be awarded by a type A energy expert and is valid for ten years.
"}},{"componentType":"sectionTitle","title":"What measures applied until the 31st of October 2023?"},{"componentType":"paragraph","richBody":{"value":"From the 1st of November 2022 until the 31st of October 2023, the PEB certificate of your rental property determined whether indexation was allowed or limited. The government's aim with this measure is to guarantee the accessibility of rental properties, but above all to encourage landlords to improve the energy level of their property. In practical terms, this means the following:
The temporary freeze on PEB Wallonia rent indexation applies to all current residential leases signed before the 1st of November 2022 for properties where the tenant establishes their main residence. For second homes, student accommodations, or commercial properties, you can still apply rent indexation in accordance with your lease contract.
"}},{"componentType":"sectionTitle","title":"I was entitled to index before the 1st of November 2022, but I didn't do so. Can I index now?"},{"componentType":"paragraph","richBody":{"value":"As the owner of a rental property, you are normally entitled to index the rent on the anniversary date of the lease, i.e., the date on which it came into force. Therefore, if your lease expired before the 1st of November 2022, you were still entitled to index the rent on that date. However, if you did not do so by then and your rental property now has an inadequate PEB, you can re-index as of the 1st of November 2023 or until the property does obtain a favourable PEB.
"}},{"componentType":"sectionTitle","title":"Can I re-index immediately after renovating?"},{"componentType":"paragraph","richBody":{"value":"Are you investing in energy renovations of your rental property? If so, you can reindex the rent in full as soon as the property has an PEB A+, A, B or C score, or a partial PEB D score. In this case, you did not have to wait until the 1st of November 2023.
"}},{"componentType":"sectionTitle","title":"What PEB and rent indexation measures apply from the 1st of November 2023?"},{"componentType":"paragraph","richBody":{"value":"From the 1st of November 2023, you are allowed to index again for a PEB score of D, E, F, or G, but only according to a modified formula. This should prevent tenants from suddenly having to pay a very high rent after a year. To do this, the standard indexation formula is multiplied by a correction factor imposed by the government.
After this date, the rent indexation on the anniversary date of the lease is calculated as follows:
(Base rent X starting index) / health index October 2022
Note: the base rent is the rent adjusted between the 1st of November 2022 and the 31st of October 2023. The starting index is the health index for the month preceding the anniversary date of the lease between the 1st of November 2022 and the 31st of October 2023.
An example as provided by the Walloon government
If the indexed rent, i.e., the adjusted rent on 01/11/2022, was 665,24 euros, then the rent indexed on 01/11/2023 is calculated as follows:
(665,24 X health index October 2023) / Health index October 2022 (= 127,92)
A complete overview of the new regulations can be found on the website of the Walloon government. You can consult all health indexes at Statbel.
"}},{"componentType":"highlight","richBody":{"value":"Improve your energy label thanks to the ING Eco Renovation Loan.
"},"title":"Do you want to renovate your buildings to make them more efficient?"},{"componentType":"sectionTitle","title":"Do the same measures apply in Brussels and Flanders?"},{"componentType":"paragraph","richBody":{"value":"In the Brussels Region, the EPB (Energie Prestatie en Binnenklimaat) is used. A similar measure applies from the 14th of October 2022 until the 13th of October 2023: rents for poorly insulated homes can no longer be indexed. However, there are some important differences compared to Wallonia:
Contrary to the Walloon region and Flanders, no correction factor has been provided for Brussels so far. Thus, after the 13th of October 2023, rental prices may soar, unless the government were to decide to extend the measure.
"},"title":"Brussels"},{"componentType":"paragraph","richBody":{"value":"In Flanders, the EPC (Energieprestatiecertificaat) is used. From the 1st of October 2022 until the 30st of September 2023, rent indexation and the EPC are also linked:
From the 1st of October 2023, indexation will once again be possible using an adapted calculation method for indexing rents for homes with a low EPC score. The adjusted indexation of rent is calculated by multiplying the standard indexation formula (i.e. base rent x new index figure/starting index figure) with a correction factor.
What’s important here is that, from now on, you will have to apply the correction factor to every rent indexation. In other words, the correction will not only apply to the rent indexation in 2023, but also in subsequent years. Only when your property obtains a better EPC label or a new rental contract starts, will you be allowed to index again without a correction factor.
Which correction factor you need to apply depends on the EPC label of your property and the anniversary date of the rental contract. For example:
Rental properties with EPC label D
Rental properties with EPC label E or F
In this article we provide a full overview of the EPC rent indexation measures in Flanders.
"},"title":"Flanders"},{"componentType":"highlight","richBody":{"value":"The ING Sustainable Buildings Guide is a free digital tool that helps you identify which investments to make to improve the energy performance of your properties.
"},"title":"Do you want to improve the energy performance of your buildings?"}]},"hasMacro":false,"id":"f7efea7c-8110-4db0-9906-c6819a5df769","legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"The standards, requirements, and obligations mentioned in this article may change regularly and are for information purpose only. We therefore recommend that you check the specific regulations and requirements with the appropriate authorities in the relevant region for the latest information and you seek professional advice on a case-by-case basis before making a decision.
ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"},"title":"Good to know"}]},"localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Sustainable business","url":"/en/business/sustainable-business"}},"componentType":"editorialHeader","coreHeader":{"body":"As a landlord, you are normally entitled to index the rent for your rental property each year. Since the 1st of November 2022, however, rent indexation and the EPC label have become mutually dependent. What modified formula applies from the 1st of November 2023? What energy level is required to be allowed to fully increase the price? What happens in the event of renovation? In this article, we answer the most frequently asked questions.","headerImage":{"extension":"jpg","original":"https://assets.ing.com/m/39b23b3d2a1df620/original/Close-up-view-of-multi-colored-abacus-beads.jpg","transformBaseUrl":"https://assets.ing.com/transform/cec6f1b2-b634-48be-bb17-db20c97e8fae/Close-up-view-of-multi-colored-abacus-beads","type":"image","width":4240},"subtitle":"Since the 1st of November 2022, the PEB certificate of a building in the Walloon Region, also affects its rent indexation. Because of the recent energy crisis, the authorities decided to take measures to help tenants living in energy-inefficient homes. As a result, some landlords have seen their rents frozen. Since the 1st of November 2023, the rent of homes with a low EPC score can be indexed again, but only using a special calculation method.","title":"PEB and rent indexation: this is the current situation"},"date":"2023-10-24","readingTime":6},"publishDate":"2024-01-30T16:55:30.836+01:00"}}