Since 2008, there has been a legal requirement for landlords to have an Energy Performance Certificate (EPC) in order to sell or let a property.
In 2018, the Minimum Energy Efficiency Standard (MEES) was introduced to improve the energy efficiency of privately rented homes and buildings. Under this standard, all rental properties in England and Wales must have an EPC rating of at least ‘E’.
By April 2020, this requirement extended to all existing tenancies, not just new ones. This means that if your property has an EPC rating below ‘E’, you are not legally allowed to let it.
- Will Labour change EPC ratings?
- How can I get an EPC?
- Do I need to renew an EPC during a tenancy?
- How long does an EPC last?
- Can landlords be fined for not having EPC?
- What financial assistance is the government offering?
- When is an EPC not required?
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Will Labour change EPC ratings?
In August 2024, Labour confirmed that landlords will have until 2030 to ensure their privately rented properties meet an EPC rating of ‘C’, or they will no longer be allowed to let them out.
Alongside these new standards, Labour’s proposals include funding to help landlords cover the cost of energy efficiency upgrades. Grants of £15,000 to £30,000 will be available, depending on the scale of the work required.
For landlords with multiple properties, they will need to cover half of the upgrade costs for any property beyond their first. This will be supported through the reinstated Warm Homes: Local Grant scheme.
The scheme will only apply to certain “eligible postcodes,” focusing on areas most in need of energy efficiency improvements.
Previously, Rishi Sunak’s government announced plans to require new tenancies to have a minimum energy rating of EPC grade ‘C’ by 2025. This requirement was to be extended to all tenancies by 2028.
These plans were ultimately scrapped in September 2023, keeping the minimum energy rating unchanged.
What does this mean for landlords and tenants?
These changes will particularly affect landlords with older or less energy-efficient properties, as they will need to act quickly to meet the 2030 requirement of achieving an EPC rating of ‘C’.
Failure to comply may lead to properties being deemed unsuitable for renting, with serious financial and legal consequences.
While government funding should ease the burden for many landlords, those whose properties fall outside the “eligible postcodes” could face additional challenges.
For tenants, more energy-efficient homes will most likely lead to reduced bills. With rising concerns over fuel poverty, especially in poorly insulated homes, raising the standard of rental properties could significantly improve living conditions for many renters across the UK.
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How can I get an EPC?
At OpenRent, we make obtaining an EPC straightforward and affordable. Leveraging our position as the UK’s largest letting agent, we negotiate competitive rates for our landlords.
Trust our platform to connect you with accredited assessors, ensuring compliance with EPC requirements without breaking the bank.
Do I need to renew an EPC during a tenancy?
You don’t need to renew your property’s EPC if you have the same tenants in the property and you’re not making any changes to their tenancy agreement.
You only need to renew an expired EPC when you plan to market the property for new tenants, or if you want to reflect improvements you’ve made to a property that will result in a better rating.
How long does an EPC last?
An EPC lasts for 10 years, no matter how many times the property is bought, sold or let.
Can landlords be fined for not having EPC?
Local authorities hold the authority to impose fines of £500 if you fail to provide your tenant with a copy of the EPC, and up to £5,000 if you don’t have a valid EPC.
What financial assistance is the government offering?
Although boosting your EPC rating offers numerous benefits, the expenses associated with repairs and improvements can add up swiftly.
Therefore, it’s essential to explore available grants for landlords, which can alleviate some or all of the financial burden.
The government currently offers various grants, including ECO initiatives and the Great British Insulation Scheme, which can help improve your property’s EPC.
Additionally, it’s wise to consult with your local council about potential energy efficiency grants.
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When is an EPC not required?
If the property has a low energy rating, and the landlord believes the property cannot be improved to meet the minimum ‘E’ rating they can apply for an exemption from the MEES regulations.
Registering for an exemption is free for landlords, but as a part of this process, you must submit evidence proving the reason for the exemption.
Various types of exemptions include:
- ‘High cost’ exemption
- ‘7 year payback’ exemption
- ‘All improvements made’ exemption
- ‘Wall insulation’ exemption
- ‘Consent’ exemption
- ‘Devaluation’ exemption
- ‘New landlord’ exemption
In line with the current regulations, some properties may be exempt from EPC regulations if the cost for upgrades to meet the requirements goes beyond £3,500.
