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If you’re buying, selling or renting a home in the UK, then you’ll have to have an Energy Performance Certificate (EPC) for your property. Wondering what an Energy Performance Certificate (EPC) is? We’ve got you covered!
In this article, we’ll explain in depth what an EPC system does, what the EPC certificate requirements are, and we’ll talk about the new EPC regulations and what that means to you as a landlord.
We’ve also put together a step-by-step checklist to improve your letting property’s EPC rating.
What is an Energy Performance Certificate (EPC)?
Energy Performance Certificates (EPCs) were introduced back in 2008 to enhance the standards of homes in the UK. The Energy Performance Certificate assesses a property’s energy efficiency, showcases it in a colour-coded grade starting from A (most efficient) to G (least efficient), then recommends fixes to improve your home’s overall efficiency.
The issued Energy Performance Certificate (EPC) is valid for 10 years.
The EPC report is used by renters and potential buyers to roughly estimate how much they’ll be paying to power and heat the property. It’s worth noting that this estimated cost is based on the average energy prices at the time of the inspection, which might be up to a decade out of date!
It also offers the tenants and potential buyers information about the house’s carbon dioxide emissions as well as the improvements that can be made to benefit from energy efficiency.
EPC Application for Landlords
As part of the EPC application, your property has to be assessed to get an EPC certificate. In this section of the blog, we provide a step-by-step guide on who can carry out the assessment, how much will it cost, and what to expect from the assessment.
Who Can Carry out an Energy Performance Certificate (EPC) Assessment?
If the property is located in England, Northern Ireland or Wales, the assessment will be carried out by an EPC accredited assessor, however, for properties in Scotland, the assessor must be from a Government-approved organisation.
How Will the Energy Performance Certificate (EPC) Assessment be Carried Out?
The Domestic Energy Assessor (DEA) will conduct a brief survey, which can take between 45 minutes to an hour to complete, before issuing a digital copy of your EPC report for your home.
In this report, your property will be placed on the colour-coded energy efficiency scale. This scale includes bands from A-G. It’s worth mentioning that the average rating for homes in England and Wales is band D.
Your home’s EPC rating will depend on; the amount of energy used per meter squared and also the level of carbon dioxide emissions.
The assessor carrying out the survey will look at the following areas before issuing the certificate:
- Heaters, boilers, heating controls and fireplaces.
- The type of fuel you’ll need to heat your property
- Extensions to property
- The property’s age
- The property’s construction type
- Low-energy lighting
- Type of window glazing
- The property’s insulation
Once the inspection is completed, the findings will be on the datasheet, and you should receive the EPC.
The house’s EPC record could be accessed online (free of charge) via the EPC register. It’s one of the few things tenants and potential buyers look at first when considering buying/ renting a new home. That’s why it’s your responsibility as a landlord of a seller to provide the EPC record information.
What’s the Cost of an EPC Assessment?
The assessment cost varies depending on many factors such as; the type and size of your property and the chosen assessor. The typical cost could range between £35 and £120 (plus VAT).
Energy Performance Certificate (EPC) Requirements
Landlords in England and Wales must have an EPC rating of band E or higher to let or sell their properties as of April 2018. If your property’s EPC report showed that your property had an efficiency rating of (F – G), you have a legal obligation to improve it, and if you don’t, you might face a fine of up to £5,000.
On the flip side, the improvements suggested by the EPC report are capped at £3,500.
If the property doesn’t reach band ‘E’ after spending £3,500, the property can be registered as exempt (providing the evidence).
Note – EPCs are also required for claiming the Government’s incentive scheme Renewable Heat Incentive (RHI).
New Energy Performance Certificate (EPC) Regulations for Landlords in 2025
You may have heard about the new bill which caused a fair bit of confusion and a lot of concerns among landlords around the EPC rating. Landlords in England and Wales will be required to have an EPC rating of Band C or above from 2025.
The new Minimum Energy Performance of Buildings Bill [HL], states the following:
“The Secretary of State must amend the Energy Efficiency (Private Rented 15 Property) (England and Wales) Regulations 2015 (SI 2015/962) to require that, subject to subsection (2)—
(a) all new tenancies must have an energy efficiency performance of at least EPC Band C from 31 December 2025; and
(b) all existing tenancies must be at least EPC Band C from 31 December 20 2028 where practical, cost-effective and affordable as defined under section 1(4).”
You should bear in mind that this law isn’t currently on the statute book, and is still making its way through Parliament. As such, the legislation could still be altered and amended as it progresses through the Commons and the House of Lords.
Once that is complete, the bill will be voted on and if given Royal Assent will become law.
How to Improve Your Rental Property EPC Rating.
Boilers and other central heating systems lose efficiency over time, which can leave you (or your tenants) out of pocket.
Generally speaking, new boiler models (A-rated boilers) are much more efficient, their efficiency rating is around 90%, saving you approximately £150 over the course of a year. This estimate calculation is based on a semi-detached house.
The average boiler lifespan is between 10-15 years, this depends on the boiler make, regular services and how well it has been maintained.
Check out WarmZilla, if you’re shopping around for a new boiler!
- Invest in LED Light Bulbs
Looking for the fastest and most effortless way to cut down on your energy bills? Then try switching your current lights to energy-efficient lights.
The Energy Saving Trust said that “In the UK, lighting accounts for 15% of a typical household’s electricity bill.
“If the average UK household replaced all of their bulbs with LEDs, it would cost about £100 and save about £40 a year on bills.”
Nowadays, newer LEDs are more affordable to install and last longer. You don’t need to change your LED lights for at least 20 years and that’s why they are the landlord’s preferred choice of lighting.
Landlords are also opting for smarter LED options that have timers to dim the lights or switch them completely off when they are not in use, in areas such as lifts, corridors or communal areas, which can also be great money and energy-saving tip!
- House Insulation (Wall & Loft)
Your home loses around 25% of its heat through the roof, 35% through walls and 40% through doors, windows and the floor. Therefore, investing in home insulation is one of the most effective ways to ensure the heat is trapped in your home.
For example, loft insulation should, in theory, pay for itself many times over in its 40-year lifetime which makes it an excellent investment.
- Invest in Energy-efficient Windows
After you’ve dealt with your insulation issues, it’s time to turn your attention to your windows. Older windows can account for up to 40% of heat loss in your home, so if you’ve had the same windows for a long time, it’s a good idea to replace them with high-performance glazing. This will have a significant impact on your home’s energy efficiency.
Some buildings may not have achieved the minimum required EPC rating of E due to the lack of double-glazed windows, and installing them might improve your score by a grade or two for roughly £2k-£5k for a terraced house.
The use of triple glazing takes things a step further. Nowadays, triple-glazed windows are becoming more and more popular, but they are still an expensive option. For example, triple glazing your windows could cost you £2,500, for a two-bedroom terraced house with 5 windows, while homeowners with larger properties could end up paying £6500 to triple glaze 12 windows. That’s why it’s a good idea to shop around before upgrading your windows.
- Smart Meters
One of the things that landlords and tenants are guilty of is not keeping a close eye on their energy usage.
Nowadays, the majority, if not all, of big gas and electricity companies have a range of smartphone apps and energy monitoring tools, as well as in-home smart meters.
keeping tabs on the energy usage means that if you notice a spike around a certain activity, appliance or even time of day, you’ll know what you need to do to bring the expenses down as quickly as possible.
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