What Landlords Need to Know About Energy Performance Certificates (EPCs)

An Energy Performance Certificate (EPC) is a document that provides information about the energy efficiency of a property.

An EPC assigns an overall energy efficiency rating to the property, offering insights into its environmental impact and energy consumption. Ratings range from A (most efficient) to G (least efficient).

The certificate is valid for ten years and can be reused as many times as necessary within that period.

It is a tenant’s right to know the EPC rating of the property before they sign the tenancy agreement. In fact, prospective tenants should be aware of the EPC rating at the earliest opportunity.

The EPC serves several purposes:

  • It indicates property running costs
  • It provides an energy efficiency rating
  • It identifies potential property drawbacks
  • It provides property improvement recommendations (e.g. double-glazed windows, loft insulation)

So not only will this help to keep your tenant safe and their bills low, but it will also help you make your property more desirable.

 

Landlord EPC responsibilities

As a landlord, you should be aware of your responsibilities regarding EPCs.

  • You must provide prospective tenants with the EPC rating of the property and then provide a certificate to tenants as part of the documents at the start of the tenancy
  • You must clearly display your energy rating when advertising your property
  • You must carry out necessary works (unless exempt) so your property has an EPC rating of E or above

A section 21 notice served by a landlord will not be valid until the landlord has provided the tenant with a copy of the EPC.

How to check a property’s energy efficiency rating

An EPC will give an energy efficiency rating and an environmental impact rating. It will also estimate the energy use, carbon dioxide emissions, lighting, heating and hot water per year, along with the potential annual costs for each. This helps tenants calculate the typical living costs of your property.

If a property has been marketed for sale or to let or it has been modified in the past 10 years, it should have an EPC. You can find an EPC by postcode here.

Remember, it is a legal requirement to have an EPC for a privately rented property. If you don’t have one, you can obtain one from a qualified assessor. Book a property assessment online here.

How to improve an energy rating

To improve your rating, you should look at your most recent EPC to see what actions will best help.

You may be eligible for assistance to improve your rating, have a look at our grants page for more information Access to grants – Safe Suffolk Renters

 

How much will improvement work cost?

Improving an EPC rating from F or G to E is capped at £3,500 (incl. VAT). You can find out more about typical improvement costs on the Government website here. If costs exceed this, landlords can apply for an exemption via the Government’s PRS Exemptions Register. However, meeting the minimum EPC rating for rental properties may not resolve other hazards in the home like damp, mould, or excess cold.

What happens if minimum standards aren’t met?

The legal minimum standard a property must meet is E. A property with an EPC rating of F or G must be improved to E immediately or be registered for an exemption which lasts for five years.

To register an exemption, landlords must provide evidence that energy efficiency improvements will:

  • need third-party consent
  • cost more than £3,500, or that £3,500 or more has already been spent
  • devalue the property

Other reasons may also be accepted. To find out more, you can read the full guidance on exemptions and the evidence requirements here.

 

Enforcement action

Where landlords do not notify us of an exemption, supply a new EPC or improvements to the energy rating of the property, a compliance notice may be issued. These may be followed up with further notices, potentially resulting in fines of up to £5,000.

All landlords are strongly advised to take action and speak to their tenants and other interested parties to improve energy ratings to comply with the minimum requirements.

Noteworthy EPC legislation changes

Since April 1, 2020, landlords have been prohibited from letting or continuing to let properties with an EPC rating below E – unless a valid exemption applies. If your property has a rating of F or G, you must improve it to at least an E rating before entering into a new tenancy.

Tenants can ask their landlords to make energy performance improvements based on EPC recommendations.

Tenants also have the option to request smart meters to manage their energy consumption effectively, especially if they are responsible for paying energy bills. Landlords can also consider installing smart meters for their properties, improving their energy rating.

Proposed changes to EPS ratings for privately rented homes in England

The UK government is planning major updates to the Minimum Energy Efficiency Standards (MEES) for rental properties, as part of its broader strategy to reduce carbon emissions and improve housing quality. The proposed changes aim for all privately rented homes to meet a minimum EPC rating of C by 2030.

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