EPC Requirements for LandlordsWritten By PropertyLoop February 15, 2021
An Energy performance certificate in an essential part of every tenancy, allowing landlords and tenants alike to understand how energy efficient the rental property is at a glance. As in more recent times since the introduction of the EPC, the private rental sector is becoming increasingly environmentally conscious, bringing into question not only the current EPC requirements for landlords, but how the rental industry can contribute towards a greener future.
- Why Do You Need an EPC Rating?
- Do Landlords Have to Provide Energy Performance Certificate?
- Does a Rented Property Have to Have a Current EPC?
- Does an EPC Need to Be Renewed During a Tenancy?
- What Is the Minimum EPC Rating for Rented Property?
- New EPC Regulations Coming in 2025
- How Long Does an EPC Last?
- How Much Does an EPC Cost?
Why Do You Need an EPC Rating?
EPC ratings allow tenants and landlords to better understand the overall energy efficiency of a rental property. The efficiency of a rental will be assessed and determined by an alphabetised scale from A to G, with grades closer to “A” being more environmentally friendly. Alongside this the documentation will provide renters with an estimation as to its running costs, alongside any improvements that can be made to the rental to make it more efficient.
Do Landlords Have to Provide Energy Performance Certificate?
Landlords are prohibited from letting out a property that does not hold a valid energy performance certificate. If the owner of the property is found to be doing so in absence of an EPC then the local authority is able to impose a fine of up to £5,000 upon the landlord.
However, the UK government has its eyes set on significantly reducing emissions, periodically raising the bar for how energy efficient a property must be before it can be let out. With this in mind, with an increase in the MEES in 2025 to an EPC grade of “C” or higher, the penalties for landlords that neglect to comply will also be raised to a staggering £30,000.
Landlords are further required to provide their tenants with a valid EPC upon the start of each new tenancy, alongside other essential documentation. If the landlord fails to give their tenants an EPC then they will be unable to serve them with a section 21 notice when trying to reclaim possession of the property.
Does a Rented Property Have to Have a Current EPC?
As mentioned, landlords will be prevented from letting out a property to tenants unless the rental currently holds an EPC. Landlords will also be legally required to provide an EPC to their new tenants once each new tenancy commences, and at the point where the property is sold.
Does an EPC Need to Be Renewed During a Tenancy?
With each energy performance certificate being valid for 10 years, landlords may be forgiven for worrying that they may need to align the end of their tenancy with the expiry of their current EPC. Simply put, this is not the case. A landlord is only required to have a valid EPC for the rental property once it is being marketed to tenants, therefore if an EPC expires during a tenancy the landlord is not legally required to have it renewed until they start the search for their new tenants.
What Is the Minimum EPC Rating for Rented Property?
On the 1st of April 2018 the UK government introduced the Minimum Energy Efficiency Standard, demanding that new rental agreements and renewed tenancy agreements must have a minimum EPC rating of an “E” grade. However, these regulations were extended to apply to all existing tenancies from the 1st April 2020. If a rental property does not achieve an “E” grade on their EPC then the landlords will be prevented from accepting tenants.
New EPC Regulations Coming in 2025
The minimum EPC rating required before a landlord is legally able to let out their property to tenants will be seeing an increase in 2025. The update to regulations will demand that a rental property must achieve an energy efficiency rating of at least a “C” grade before being let to tenants. If the owner of a rental property is found to be renting without adhering to the updated MEES then they will face a fine of up to £30,000 from the local authority. However, with only 2% of properties within England currently achieving EPC ratings of “A” & “B”, many landlords have expressed doubt on meeting these goals.
How Long Does an EPC Last?
An EPC lasts for 10 years – so it’s not exactly an arduous requirement. The date of assessment should be on the certificate, but landlords who want to double check how many years they have left on their EPC can look at the EPC Register website.
How Much Does an EPC Cost?
You can expect to pay around £30 for an EPC (more if you live in London). It will vary though, depending on the size of your property ie a one-bedroom flat will take less time to assess than a five-bedroom HMO. To find an EPC assessor you can look online at the EPC Register for a tradesman in your area.
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