Energy Performance Certificates (EPCs) play a crucial role in the UK property market, providing landlords, tenants, and prospective buyers with an insight into a property’s energy efficiency. If you’re a landlord, understanding EPC requirements is essential to ensure compliance, avoid fines, and enhance the appeal of your rental property.
The Landlord Insurance team at Lansdown breaks down the key points highlighting what landlords need to know.
What is an EPC?
An Energy Performance Certificate (EPC) is a document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). It also includes recommendations on how to improve the property’s energy efficiency, which can help reduce energy bills and environmental impact.
Who Needs an EPC?
If you’re renting out a property in England, Wales, or Northern Ireland, you are legally required to have a valid EPC before letting it to tenants. In Scotland, landlords must also display the EPC somewhere in the property, such as in a meter cupboard.
How long is an EPC valid for?
EPCs are valid for 10 years, and the cost varies depending on the size and location of the property, typically ranging between £35 and £120. The certificate must be issued by an accredited Domestic Energy Assessor.
Minimum Energy Efficiency Standards (MEES)
Under the Minimum Energy Efficiency Standards (MEES), rental properties in England and Wales must have an EPC rating of at least E. It is currently unlawful to rent out a property with an F or G rating unless an exemption applies. The government has proposed raising this minimum to C in the future, though plans are currently under review.
Exemptions
Some properties may qualify for exemptions from MEES, including:
- Listed buildings where energy efficiency improvements would alter their character
- Temporary buildings (used for less than two years)
- Properties that cannot be improved to an E rating within the cost cap of £3,500
If an exemption applies, it must be registered on the PRS Exemptions Register.
Will I be fined if I do not provide an EPC?
Failing to provide a valid EPC can result in fines ranging from £500 to £5,000, depending on the property type and the severity of the breach.
How to Improve Your EPC Rating
Improving your EPC rating can make your property more attractive to tenants and potentially increase its value. Common energy efficiency upgrades include:
- Installing loft and wall insulation
- Upgrading to double or triple glazing
- Using energy-efficient lighting
- Replacing an old boiler with a modern, energy-efficient model
- Adding renewable energy sources, such as solar panels
Various grants are available to ease some of these financial burdens while ensuring your tenants enjoy safe and comfortable living spaces. Our Landlord Insurance team have summarised the financial assistance that you may be eligible for as a landlord here.
This article is for informational purposes only and should not be considered legal advice.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance, Block of Flats Insurance and HMO Insurance. We can provide flexible policies to suit our client needs and provide advice on what cover is needed. For more information call the team on 01242 524498.
Lansdown is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.