An Energy Performance Certificate (EPC) provides valuable insight into a property’s energy efficiency and carbon dioxide emissions. As a landlord, it is your responsibility to ensure that your property has a valid EPC that meets the latest regulations, known as the Minimum Energy Efficiency Standards.
In this article, we’ll take a closer look at EPCs, including the latest changes and what they mean for both landlords and tenants. To obtain an EPC, you’ll need to schedule an Energy Assessment Survey conducted by a Domestic Energy Assessor, which typically takes around an hour a, during the assessment, the assessor will evaluate the property’s energy efficiency and identify areas for improvement, such as windows, insulation, heating systems, lighting, and more.
Currently, rental properties must have a valid EPC rating of E or above to be legally let. However, the latest Minimum Energy Efficiency Standards, which came into effect in April 2020, require all rental properties to have an EPC rating of C or above by 2025. Failure to comply with these standards can result in a penalty of up to £30,000.
An EPC is valid for 10 years, and tenants are entitled to a copy of their home’s EPC when they move in. Landlords must also give tenants at least 24 hours’ written notice before an energy performance assessment takes place.
Bringing a property up to the required rating can be costly, with estimates suggesting that it could cost around £10,000 to move a property from a D rating to a C or above. Unfortunately, these improvements are not tax-deductible as they are considered capital expenditure. Landlords who are unwilling or unable to make these upgrades may choose to exit the rental market, leading to a smaller rental market, fewer choices for tenants, and potentially higher rental prices.
There are exemptions to the Minimum Energy Efficiency Standards, including listed or protected buildings, temporary buildings, some workshops and industrial sites, and more. Landlords can use online tools to estimate potential upgrades and costs based on similar properties in their area.
Overall, it is important for landlords to stay informed and prepare for changing environmental and energy efficiency standards. If you have properties with older EPCs, it may be worth renewing them, and you should review existing properties to determine what work will be needed. By taking these steps, landlords can ensure that they are in compliance with the latest regulations and provide comfortable, cost-efficient homes for their tenants.
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