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EPC ratings for landlords

With an increasing focus on green properties in the Private Rented Sector (PRS), we are committed to supporting our landlords to make sure that their properties are up to standard.

What is an Energy Performance Certificate?

An Energy Performance Certificate (EPC) gives each building a Standard Assessment Procedure (SAP) rating. This equates to an energy rating from A to G (A is very efficient, and G is very inefficient), like those already seen on white goods.

The EPC will show the energy efficiency levels of a property, so a prospective tenant is able to determine and compare the relative financial running costs of renting a property.

Find an EPC for a UK property
why landlords should make their homes more efficient

Why make your property more energy efficient?

Maximising the energy efficiency of your property not only ensures that you are complying with the latest Government regulations, but it can also make your property more attractive to prospective tenants.

What are the current EPC regulations?

Since April 2020, all rented properties must have an EPC rating of E or above. If a property is let on an assured tenancy, a regulated tenancy or a domestic agricultural tenancy, and is legally required to have an EPC, it is covered by these regulations. If the property that is let has been marketed for sale or let, or modified in the past 10 years, then it’s likely that it will be legally required to have an EPC.

Full guidance for landlords on the current EPC regulations can be found on the Government website.

EPC Regulations explained
what happens when you have a bad epc rating

What if my property has an EPC rating of F or G?

Since 1 April 2020, properties with an EPC rating of F or G are now classed as unrentable and energy efficiency improvements must be made to raise the raise the EPC rating to meet the minimum requirement.

However, under the regulation’s cost cap, you will never be required to spend more than £3,500, including VAT for energy efficiency improvements. Where a property cannot be improved sufficiently to achieve an EPC rating of E for £3,500 or less, landlords must take all steps up to £3,500 and register an ‘all improvements made’ exemption.

Some properties are exempt from the regulations; for example, if the building is listed or protected. If the property meets the guidelines for exemption, you can apply via the PRS Exemption Register.

What are the potential changes to EPC regulations?

Under Government proposals, by 2025, homes in the PRS will need a minimum EPC rating of C for new tenancies and in 2028, this will extend to all homes in the sector.

This new requirement will also see an increase in the landlord investment level being capped to £10,000. There will be exemptions to these regulations, but these are yet to be confirmed.

These new rules are not yet set in stone and the Government is due to update its plans in 2023.

potential changes to epc
how to get an updated EPC

How do I get an updated EPC?

An EPC is produced by a qualified Energy Assessor who visits your rental property and gathers vital information to produce the certificate.

Each certificate will last for ten years unless major renovation work is carried out on the property.

Property owners can voluntarily get a new certificate after installation of energy efficiency measures – particularly if these improve the energy rating. If a newer EPC has been produced for a home within the ten-year period, only the most recent one is valid.

The costs an Energy Assessor may charge vary quite widely, anywhere from £50 to £100 plus depending on location.

What can I do to make my property more energy efficient?

Often the Assessor will recommend energy efficiency measures such as loft and or cavity wall insulation (where it can be fitted), thermostatic radiator valves and double glazing. Other provisions to consider are installing a new boiler (if the original is over ten years old) and checking for heat escaping from the property by use of a thermal imaging camera.

Thermal imaging technology has moved on apace in recent years, so much so that today, you can even buy an attachment for your smart phone and instantly have a thermal camera at your disposal. Thermal imaging will allow you to check around doors and windows, where pipes exit the property and for cold-spots in radiators.

This technology can help to identify quick fixes (and stay on top of property maintenance) which may or may not help reach the required ‘E Rating’ or above on the EPC.

how to make your home more efficient

Help for landlords

Maximising the energy efficiency of a property not only ensures that you are complying with the latest Government regulations, but it may also make your property more attractive to prospective tenants.

For further energy efficiency advice, the Energy Savings Trust is a great place to start.

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Monday, 17/07/2023

Join our Regional Surveyor, Stephen Lofthouse, as he reveals the world of buy-to-let property assessment and the growing importance of Energy Performance Certificates (EPCs).

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Thursday, 27/01/2022

Discover four ways to improve the energy efficiency of your rental property and meet the new EPC minimum standards expected to be unveiled by the Government.

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