EPCs for Landlords
If you are a landlord in the UK, an Energy Performance Certificate (EPC) is an important part of renting out a property. An EPC provides information about the energy efficiency of a property and includes recommendations for improvements that could improve its energy performance.
This guide explains what an EPC is, when one is required and some of the requirements landlords should be aware of.
What is an EPC?
An Energy Performance Certificate gives a property an energy efficiency rating from A (most efficient) to G (least efficient).
The rating is calculated using information about the property and its energy-related features.
The EPC also provides recommendations for potential improvements to the property's energy performance. These recommendations can include measures such as improving insulation, upgrading heating systems or installing more efficient windows.
The costs and savings shown in an EPC are standardised estimates and should not be treated as guaranteed costs or savings.
When does a rental property need an EPC?
Except for limited cases, a landlord must have a valid EPC before a property is marketed for sale or rent.
There are some exemptions and specific circumstances where an EPC may not be required, so it is important to check whether an exemption applies to a particular property.
An EPC is normally valid for 10 years, although a newer certificate can replace an existing EPC before it expires.
What EPC rating does a rental property need?
For properties covered by the Minimum Energy Efficiency Standards (MEES), there are requirements relating to the property's EPC rating.
Generally, a privately rented property must have an EPC rating of E or above unless a valid exemption applies.
The rules surrounding MEES, exemptions and the circumstances in which they apply can be complex and are subject to change. Landlords should check the current government guidance to ensure they understand the requirements that apply to their property.
What happens during an EPC assessment?
An EPC assessment involves collecting information about the property and its energy-related features.
The assessment will include looking at:
The size and layout of the property
The construction of the walls, roof and floors
Loft and other insulation
Windows and doors
Heating and hot water systems
Lighting
Renewable energy systems
An EPC assessment is non-invasive. It does not involve removing walls, floors or other parts of the property.
Where available, information about previous improvements can be useful. This might include documentation relating to insulation, replacement windows, heating systems or other energy-efficiency improvements.
What if the property has a low EPC rating?
If an EPC identifies that a property has relatively low energy efficiency, it will include recommendations for potential improvements.
The recommendations are intended to provide information about measures that could improve the property's energy performance. They may include:
Loft insulation
Cavity wall or solid wall insulation
Floor insulation
Heating system improvements
Hot water improvements
More efficient lighting
Window improvements
Renewable energy technologies
Not every recommendation will be suitable for every property. The EPC recommendations should therefore be considered alongside the individual characteristics, condition and circumstances of the property.
EPCs and energy efficiency improvements
An EPC can be useful when considering future improvements to a rental property because it provides an indication of the property's current energy performance and identifies potential measures that could improve it.
However, an EPC is not a building survey or a detailed assessment of the condition of the property. The recommendations are based on the information available during the assessment and the standard methodology used to produce an EPC.
If significant building work or energy-efficiency improvements are being considered, further professional advice may be appropriate.
If you are unsure wether you need an EPC or if you have any questions please do not hesitate to contact me.