What you need to know about EPC Legislation

EPC Legislation, it's as easy as E P C

By now, we all know how quickly things can change in this industry, especially key legislation and governance which are no strangers to change.

Back in 2018 (if you can remember pre-COVID times) the EPC requirements for landlords were set at an energy rating of an 'E' for all tenancies and vendors selling their property were required to meet a minimum energy rating of a 'G'.

Last year, in 2021, more changes to these minimum energy requirements were announced to take effect in December 2025. When the time comes, landlords will have to ensure that their properties meet a minimum 'C' rating for new tenancies. Similar to the first major changes, these new rules will be rolled out for new tenancies from 2025, followed by all tenancies from April 2028.

This will be a legal requirement, enforced under the threat of penalty. At the moment the penalty for not having a valid EPC is £5,000, when the new rules take effect the penalty will be increased to £30,000... ouch…

Anyway... If you've got this far and you're wondering "what the heck is an EPC?", don't worry just read on. An Energy Performance Certificate provides information and an assessment of your property’s energy efficiency and carbon dioxide emissions. There are many situations that require an up-to-date EPC including whenever a property is built, sold or rented.

An EPC must be completed by an accredited Domestic Energy Assessor (DEA) who will conduct an Energy Assessment Survey at your property. The DEA will perform both internal and external inspections to determine how energy efficient your property is. Recommendations will also be provided on possible improvements that could be made to increase the rating.

Here are some of the things that are taken into account:

• Windows

• Roofs

• Walls and insulation

• Boilers and heating systems

• Lighting

• Fireplaces

• The building's measurements and materials

• Age of the building

Upon completion of the survey, the DEA will put together your EPC and grade your property’s energy performance. Your rating is given a score ranging from A-G on a colour chart:

🟩 A - Most energy efficient

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🟥 G - Least energy efficient

EPCs are stored in the EPC Register. If you are curious as to whether or not you have an up-to-date EPC or just want to remind yourself of the ratings of your properties, you can access the full database here.

An EPC lasts for 10 years so once it expires you don't need to get a new one unless a new tenancy is started or the property is being sold. In the current guidance, you are not automatically required to get a new one at the end of its 10-year lifespan.

That being said, here at Ultralets, we would recommend getting a new EPC as they expire regardless of whether or not there is a new tenancy coming in or the property is being sold. Let's break down why we would suggest this.

10 years is quite a long time, especially when we are thinking about the amount of time people are at home, as a property is occupied it can experience wear and tear that may impact the energy efficiency rating. This could cause your property to be knocked down into a lower category. If you are regularly (every 10 years) having the property surveyed, you can help identify weaknesses that may have developed in the efficiency of the property and get recommendations on ways to improve the rating.

You can never anticipate what circumstances may change for your tenants at any moment in time, regular EPCs will help you stay on top of the condition of your property, should the unexpected happen and a long-term tenant vacates. If you are confident that your property is at the appropriate minimum EPC rating, surprise vacancies resulting in new tenancies won't bring you as much of an unexpected cost.