Landlords have a responsibility - a “duty of care” - to ensure the property they rent is both safe and energy efficient. What constitutes “safe” is open to debate, but energy efficiency can be viewed as an exact science in that there are measurements that can determine whether a property is energy efficient or not. In the UK, the primary vehicle for determining the energy efficiency of a rental property is the Energy Performance Certificate or EPC. In this guide, we’ll provide you with everything you need to know about EPCs for rental properties.
First Things First: What is an EPC?
In August 2007 the UK government introduced the Energy Performance Certificate programme as part of the EU’s directive on energy performance in buildings. The EPC uses a simple alphabetic system to indicate the energy efficiency of a building with an “A” rating being the best and a “G” rating being the worst.
In April 2018 the EPC programme was modified to require every UK property to achieve an EPC rating of at least E before it could be offered for rent. In April of 2023, EPC regulations were updated yet again, this time to prohibit the continued rental of properties that did not achieve a minimum EPC rating of E. (Prior to the new EPC regulations in 2023 a property could continue to be let as long as the landlord paid the related fines.)
Even more stringent guidelines proposed in 2021 that would have taken effect in April of 2027 and April of 2030 have recently been scrapped by PM Rishi Sunak who called the proposed regulations just wrong citing the potential cost to landlords.
Why are EPCs Necessary?
Current law states that potential tenants have a right to know about the energy efficiency of a property they intend to rent, since energy bills represent a potentially significant cost. The EPC is how that information is conveyed to potential renters. The EPC is also one of the UK government’s most important tools in helping it implement the long-term goal of making the nation net zero by 2050.
Does Every Home Need to Have an EPC?
When discussing programmes like the EPC initiative it is easier to talk in generalities. For instance, stating that the law requires all properties to have an EPC certificate before being rented or sold. But in reality, there is a bit of wiggle room.
For example, if you own a home and use it as your primary residence there is currently no legal requirement that you obtain an EPC. However, if you decide to move out and rent it to someone else you will need to obtain an EPC and show it to the potential tenant, and that EPC must show that the home has a rating of at least “E”.
If you fail to provide a prospective tenant with an EPC you can be fined anywhere from £500 to £5,000.
How to Obtain EPCs for Rental Properties
EPCs for rental properties can only be issued by accredited energy assessors who assess the energy efficiency of various aspects of your property using clearly established, scientifically-based guidelines. Additional non-scientific factors will also be taken into consideration such as the building’s age, general state and more. After completing the assessment an EPC is issued to the property owner indicating the structure’s EPC rating.
Understanding Your EPC Rating
As we mentioned earlier EPC ratings range from A, which indicates at least 92% energy efficiency, to G, which indicates energy efficiency of only 1 - 20%. Currently, if you want to rent a property to a new tenant that property must have an EPC rating of at least E (39 - 54% efficiency). Prior to April 2023 a property owner could get away with continuing to rent a sub-E building as long as they were willing to pay the related fines. Not anymore.
Exemptions
As is the case with most regulations there are exemptions to the EPC programme. Properties that may not need an EPC certificate include:
Simple Ways to Improve Your EPC Rating
If your property is assessed a sub-E rating there are simple, straightforward steps you can take to bring it into compliance. These include:
Key Takeaways
Although originally an EU initiative, the EPC programme is one of many that survived Brexit. Not only has it survived, it has been strengthened and requirements tightened in order to compel compliance and help steer the UK toward the goal of being carbon neutral by 2050.
Therefore, if you hope to rent a property today that property will need to achieve an EPC rating of at least “E”. Likewise, as of April 2023, you can no longer continue to rent property that has a sub-E rating. While some further strengthening of EPC requirements that were due to take hold in 2027 and 2030 have been scrapped by PM Rishi Sunak, all current requirements related to EPCs for rental properties remain firmly in place.
Contact Energy Performance Certificates to Obtain EPCs for Rental Properties
If you need to obtain an EPC for a rental property, contact the team at Energy Performance Certificates. We assess more than 5,000 properties annually and can help you bring your property into compliance with current EPC regulations. We’re easy to reach by calling 0203 397 8220, or by sending us an email at: hello@energyperformancecertificates.co.uk.
