Energy Performance Certificates

The Energy Performance Certificate (EPC) provides details on the energy performance of a property and what you can do to improve it. Here are the key facts you need to know as a landlord.

What is an Energy Performance Certificate (EPC)?

Energy Performance Certificates provide details on the energy performance of a property and what you can do to improve it. An EPC is required for properties when constructed, sold or let. They are chargeable and are valid for 10 years.

EPCs act as a measure of the quality of a property, provide information on how much energy the property uses and recommendations for improvement.

Energy performance is graded from A to G, and governments are actively seeking to improve the energy-efficiency of homes across the UK.

Under revised plans, the Government will remove policies to force landlords to upgrade the EPC rating of their properties to a C, but instead will continue to encourage households to do so where they can.

Within seven days of putting your property on the market, your property must have a valid Energy Performance Certificate dated within the past ten years, or you could face a fine of up to £5,000.

Do you have a valid EPC?

Since 1 April 2020, landlords must have a valid Energy Performance Certificate (EPC) rating of E or higher on all properties being rented out, unless exempt.

The Mortgage Works won’t accept mortgage applications for properties that don’t have a valid EPC or exemption. You could be fined or face restrictions on letting your property. This applies to properties where there are existing tenants, as well as new tenancies.

How to get an EPC

An EPC is produced after a certified assessor carries out an energy survey on a property. If you need an EPC, click on one of the links below to find an approved assessor who can survey your property:

• Department for Communities and Local Government (for England and Wales)
• Energy Saving Trust (for Scotland)
• If your property already has an EPC you can find it by visiting the Energy Performance of Buildings Register

Exemptions

There are certain exclusions and exemptions from meeting the minimum EPC standard, see details on exemptions, here. If you believe your property qualifies for an exemption, this must be registered on the PRS Exemptions Register.

Improving your property’s EPC rating

If your property has an EPC rating of F or G, you’ll be expected to make energy efficiency improvements required to reach an EPC rating of E.

The EPC for your property should contain a recommendations report, which should list any of the energy efficiency measures recommended for the property. You can access guidance from the government, to help you identify improvements which can be made here.

Taking action to improve your EPC rating to an E

Since 1 April 2020, landlords can no longer let or continue to let properties covered by the Minimum Energy Efficiency Standard if they have an EPC rating below E, unless they have a valid exemption in place.

If you are currently planning to let a property with an EPC rating of F or G, you need to improve the property’s rating to E, or register an exemption, before you start a new tenancy.

If you are currently letting a property with an EPC rating of F or G, and you haven’t already acted, you must improve the property’s rating to E immediately, or register an exemption.

If your property is currently empty, and you are not planning to let it, you don’t need to take any action to improve its rating until you decide to let it again.

Funding improvements to your property

The cost cap: you will never be required to spend more than £3,500 (including VAT) on energy efficiency improvements.

If you cannot improve your property to EPC E for £3,500 or less, you should make all the improvements which can be made up to that amount, then register an ‘all improvements made’ exemption.

There are 3 ways to fund the improvements to your property:

• Option 1: Third party funding
• Option 2: Combination of third-party funding and self-funding
• Option 3: Self funding

If you have made any energy efficiency improvements to your property since 1 October 2017, you can include the cost of those improvements within the £3,500 cost cap.