Time Running Out for Landlords Meeting New EPC Rules (2018)

From next year, you won’t be able to rent out your property unless it passes an efficiency test. Over one million dwellings in England and Wales would not currently pass the new rules, and could face huge fines.

To make sure you don’t fall foul, EPC Expert Tom Harrington takes us through the new rules and what you need to do to make your property compliant in time.


What Are the Upcoming EPC Changes?

Landlords need to get a new EPC certificate every ten years. Back in 2015 legislation was passed that means, from April 2018, both domestic and non-domestic properties in England and Wales will have to meet a minimum energy efficiency standard (MEES).

The minimum efficiency standard is set at an E rating for all types of domestic and non-domestic property.

So which properties do the new EPC rules apply to?

  • domestic properties in the private rental sector
  • on a lease between 6 months and 99 years
  • Properties in England and Wales. (Scotland currently has a similar legislation that is already in place.)
England and Wales EPC rating distribution
Number of homes with each EPC rating in England & Wales

Without an EPC rated E or above it will not be possible to issue a new tenancy, or renew an existing tenancy, from 1st April 2018.  There are fines of up to £5,000 for landlords that are found in breach of the legislation.

Do the EPC Changes Affect Current Tenancies or Just New Lets?

The 2018 rules only apply to new tenancies, but in 2020, the same rules will apply to all tenancies.

April 2018 Changes

After April 2018, if your minimum term ends, but you still have a contract in place, the rules won’t suddenly apply to your tenancy. Even if your last rating was below an E, you will be ok as long as you don’t renew your tenancy.

After your minimum term expires, your tenancy can run on as a periodic tenancy. Read more about what happens at the end of your minimum term here.

April 2020 Changes

In April 2020, the new MEES rules will apply to all existing lets. At this point, you will need an EPC rating of an E or above to let your property at all.

Even if your tenancy is already underway and you have no plans to renew, after April 2020, you will need to have an EPC rating of E or above or you could face fines.

What Should I Do If My Rental Property Has an EPC that Is Lower than an E Rating?

If your last EPC rating was below an E, the first thing to do is to get an up-to-date EPC carried out. You can order a comprehensive EPC report with OpenRent.

EPC calculations are changing all the time and it is possible that you will receive a different rating to the one you got several years ago. If the property’s new EPC rating is still below an E, then you will need to make efficiency improvements to boost your rating before you let it out or renew your contract.

Your EPC report will have a list of recommended measures for improving your property’s energy efficiency performance. You will need to carry out enough of these measures to improve your score to above an E rating.

Example of EPC recommendations for improving domestic property energy efficiency

The recommendations in the table are cumulative. In other words, the rating in the ‘Rating After Improvement’ column shows you what the rating would be if you carried out that improvement and all the improvements above it in the table.

Speak to your EPC assessor if you are unsure about how to proceed with improvements. After the energy efficiency changes have been made to the property, you will then need to get another EPC to show the new energy rating.

Exemptions to New EPC Rules

In England and Wales, there are over one million domestic buildings with an EPC rating of F or G – that’s around 6% of properties.

There are some exceptions as to which properties must comply with the new regulations. These will only apply in a small number of cases. If one of these apply, you can register for an exemption on the central register, which will be launched in October 2017.

  • Devaluation: The required improvements will either cause damage or reduce the value of the property by 5% or more.
  • Consent: It is not possible to gain the consent for the works to be completed required from the tenant, lender or superior landlord.
  • Cost: The identified improvement measures are not cost-effective, either within a seven year payback, or under the Green Deal’s Golden Rule.

 


Tom Harrington is the Managing Director of EPC Online, one of the largest EPC providers in the country, carrying out over 2000 property visits every month. He is also Editor at Energy Assessor Magazine.

 

33 Replies to “Time Running Out for Landlords Meeting New EPC Rules (2018)”

  1. what about old listed properties that can’t have loft insulation/cavity wall insulation/double glazing? Are they exempt?

  2. The building regulations do currently allow traditional (pre 1914) dwelling to be exempt from thermal efficiency measures as this type of construction relies on the walls being able to breathe. In Western Britain it is often inappropriate to undertake such measures. Does anyone know if similar exemption are available with these rules?

  3. We have a HMO, which means the heating costs are included in the tenants rents and not charged individually. Due to this we are exempt, is this still so ?

    1. I only have the one house it is a 1940s ex pit house that I purchased from the. Council many years ago it is loft insulated it has cavity insulation does the changes affect me I’m not far off my 60th it’s very worrying

      1. My sympathies Penny, I am a single woman of 75 and managing two let flats on my own and doing quite a bit of the work myself so I know how worrying complying with new standards can be! Liz

  4. What if the current EPC certificate was issued in 2010 (when the property was bought)? I’m planning to rent the property out in 2018. Nothing has changed since 2010, the rating would still be B in today’s measurements.

    1. Hi Rick, if you’re rating is a B, then the new rules won’t affect you. You will, however, need to order a new EPC before 2020 if the property’s previous EPC was performed in 2010, since EPCs must be performed every 10 years on rental properties.

  5. I have an EPC dating back to 2009 before my time. currently showing borderline F at 38 and could go to D 55.

    I had the condensing boiler serviced and the engineer was amazed that he was getting 98% is there anyway of showing that to an EPC guy as it says change the boiler to a Band A boiler and I would get D55. it seems pretty efficient to me! Plus I have put LED lights throughout since that was done. It is an old 1920’s terrace.

    1. Hi Jon, if you’ve made improvements since your last EPC, your rating could well have improved. As it says in the post, the first thing to do is get an up-to-date EPC and see if still have to make improvements to get an E or above before April 2018.

      Sam
      OpenRent

  6. Hi, I am a tenant and have not seen an EPC certificate. If the property I am living in fails these new EPC rules will I have to find somewhere else to live?

    1. Hi Bernie, if your landlord doesn’t have an EPC rating of E or above by April 2018, your tenancy will still exist. It’s just that they risk a large penalty fine for not complying. The first thing to do here is to ask your landlord to see their Energy Performance Certificate for your home. Landlords have been legally requried to do this since 2008.

  7. I live in a pre 1914 block of flats as a tenant. The building may or may not be listed. Will the new rules in 2020 enforce double glazing to be installed? It would have to pass listed building status. The walls are not cavity and the floors are timber. Surely the biggest waste of heat is through the single glazing of these sliding sash windows.

    1. Hi Stuart, the route via which buildings achieve the minimum energy efficiency standard isn’t specified in the new rules.

      Our EPCs come with a list of recommendations on how to improve the property’s energy efficiency rating, along with key factors like an estimate of how much they will cost. It is up to the landlord to assess these factors and choose the best options should they need to improve the building’s rating. It is not possible to know whether double glazing will be the best way to do this until an EPC assessment is made.

  8. In 2016 I had to have cavity wall insulation removed in my 1980s house via the guarantee – it was installed prior to my ownership.
    Black mould growth on external walls despite proper ventilation – caused issues and numerous complaints & threats from tenant.
    Survey showed cavity too narrow, & should never have been installed in first instance.Insulation was soaking wet in places.
    Also ( from my extensive research ) it is now considered inappropriate to install cavity wall insulation in houses on west side of UK , subject to driving rain etc etc ….. mine ticks all the boxes in which it is not a good idea!
    Cavity wall insulation is NOT the answer – cavities are there for good reason, and I would NEVER buy a house with it again because it was a complete nightmare to resolve, needing MP involvement in our area.

  9. I live in a rented property there is no consumer electric box just an old fashioned fuse box, double glazing in the windows need replacing, also the cooker and oven are wired up in the same box behind the oven, only found this out as a new oven was installed. Will all this need be felt with or will the landlord be fined?

    1. Hi Tracey, sorry to hear you’ve had some issues with your property. The only thing there that might affect the property’s EPC rating is the double glazing, and a fine would only ensure if you started a new tenancy after 2018 and the property’s rating was below an E.

      Regarding the electricity, the landlord has a duty to ensure that the structure of the property is safe, and this includes the electrical fixtures. They best way to ensure the safety of electrical fixtures is with an Electrical Installation Condition Report (EICR). If you are concerned about your safety, you might ask your landlord to order one.

      To give you an idea, you can take a look at what our EICR contains here: https://www.openrent.co.uk/landlord-electrical-safety-certificates-PAT-EICR

      Thanks,
      Sam
      OpenRent

  10. Electric hob & oven connected to a dual plat behind the oven is normal method now. however fuseboards should be changed to a consumer unit with MCBs for each circuit & RCCD protection for all 13A points.

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  12. Hi I live in preston lance were can I get a safety check done before I go to my landlord with the details about the house old windows/ old elc box/no bath just a shower thanks

  13. Currently rent the house and get on with landlady the house is ex council house but needs new bathroom , but I’m worried because we are happy here , but if landlady is forced to do changes she will sell the house and its very differcult to find rented accomadation here ,these new rules could put a lot of rented houses up for sale

    1. Hi Carol & Caz,

      If the property is going to be occupied for less than four months of the year, then the new minimum efficiency standards don’t apply.

      Hope that clears it up for you! Let me know,

      Sam
      OpenRent

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