Update – Changes to the Energy Performance Certificate (EPC) Regulations

The landscape of lettings in the UK is evolving once more, and landlords need to be ready. Unveiled recently, amendments to the Minimum Energy Efficiency Standards (MEES) for England and Wales stipulate that all rental properties must achieve an Energy Performance Certificate (EPC) rating of ‘C’ or higher by 2028.

These changes underline a resolute commitment by the UK Government to mitigate the environmental impact of domestic energy use, making energy efficiency a priority and progressing towards a greener, more sustainable future. This shift not only represents an important stride in addressing the climate crisis, but also aims to make homes more comfortable and reduce energy bills for tenants.

As a landlord, it is imperative to familiarise yourself with these changes to the EPC regulations. Not only will it be a legal obligation, but such energy efficiency improvements could enhance the attractiveness of your property to prospective tenants, potentially securing longer tenancies and adding to your property’s value.

It’s crucial for landlords to be aware of the legal requirements and responsibilities that come with renting out a property. One of these requirements is having an Energy Performance Certificate (EPC) for your property. In this blog, we will discuss the consequences of not having an up-to-date EPC and why it’s essential for landlords to comply with the regulations.

The Legal Requirements for EPCs

An EPC provides information about the energy efficiency of a property. It includes information about the property’s energy use, carbon dioxide emissions, and recommendations for improving energy efficiency.

It is a legal requirement to have an EPC if you are renting out a property and you also must provide a copy to your tenants before the tenancy starts.

If you don’t have an up-to-date EPC, you could face penalties. The penalty for not having an EPC when required is £200. If you fail to comply with the penalty notice, you could face further fines of up to £5,000.

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The Consequences of Not Having an Up-to-Date EPC

Not having an up-to-date EPC could result in legal consequences. For example, you may be unable to evict a tenant using Section 21 of the Housing Act 1988 if you have not provided them with a valid EPC.

Not having an up-to-date EPC could also result in financial consequences. Your property may be less attractive to potential tenants, which could result in longer void periods. Additionally, you may not be able to increase your rent as much as you would like if your property has a low EPC rating.

Not having an up-to-date EPC could also have practical consequences. For example, you may not be able to make improvements to your property if you don’t know what improvements are needed. An up-to-date EPC can help you identify areas where improvements can be made.

How to Get an Up-to-Date EPC

To obtain an up-to-date EPC, you need to find a certified assessor who will carry out an assessment of your property. The assessment will take into account the age, construction, and location of the property, as well as the type of heating, insulation, and lighting systems that are in place.

You can find a certified assessor by visiting the government’s website where you can search for assessors by postcode. You should look for an assessor who is accredited by a government-approved scheme.

The cost of obtaining an EPC will vary depending on the size of your property and the assessor you choose, but the average cost is around £50-£100.

The Benefits of Having an Up-to-Date EPC

One of the benefits of having an up-to-date EPC is improved energy efficiency. An EPC can help you identify areas where your property is wasting energy and provide recommendations on how to improve its efficiency. By implementing these recommendations, you can save money on your energy bills and reduce your property’s carbon footprint. Additionally, having an energy-efficient property can be attractive to tenants who are environmentally conscious.

Another benefit of having an up-to-date EPC is increased property value. A higher energy efficiency rating can make your property more attractive to potential buyers or tenants, leading to a higher resale value or rental income. In fact, a study by the UK Green Building Council found that properties with a higher EPC rating tend to have a higher market value than those with a lower rating.

Having an up-to-date EPC can also help with marketing and tenant attraction. As it is a legal requirement to include the EPC rating in any property advertisement, a higher rating can make your property more attractive to potential tenants, especially those who are looking to save money on their energy bills. By advertising your property’s energy efficiency, you can differentiate it from other properties on the market and potentially attract more tenants.

Conclusion

As a landlord, it’s essential to ensure that your property is up-to-date with all the required legal regulations, including having an up-to-date EPC. Failing to comply with these regulations can lead to severe consequences, including financial penalties and legal action. Obtaining an EPC is a straightforward process and has many benefits, such as improved energy efficiency, increased property value, and tenant attraction. Therefore, it’s in your best interest as a landlord to ensure that your property has an up-to-date EPC.

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