Landlords – EPC Regulations You Must Comply With

Wed 24 Jul 2019

There is no shortage of regulations for landlords to consider, and it is crucial letting industry professionals stay in touch with all relevant laws. In recent years, there has been a lot of focus on the Energy Performance Certificate, the EPC, and MEES regulations. If you are unaware of these regulations, or you would like a refresher, ADM Residential is here to help you.

What is an EPC?

The EPC offers an energy rating for a property, with the ratings running from A to G. A is the most efficient rating while G is the least efficient. The rating details how energy efficient the house is, which is informative for prospective tenants.

An energy-inefficient house is more expensive to run, so any tenant looking to undertake a cost analysis of potential rental options can make an informed decision. Currently, landlords, apart from some rare exemptions, are unable to let property if it holds an EPC rating of an F or G. Therefore, for a property to be deemed suitable, it must hold the rank of E or higher.

What information does the EPC contain?

The EPC is informative, providing details on:

·        How much energy will be used in the property

·        The cost of heating and powering the property

·        Savings that can be made if energy-efficient improvements are carried out

·        Details on who assessed the property

·        EPC tests are carried out by qualified Energy Assessors, who visit the property and evaluate the energy rating based on their findings.

As a landlord, do I need to have an EC for my rental property?

Yes. As of October 2008, all landlords operating in England and Wales must provide new and prospective tenants with the EPC. Landlords cannot charge tenants for the EPC, and if possible, give the certificate at the viewing stage.

As of October 2015, all landlords in England who don’t show a valid EPC to existing and prospective tenants fail to comply with Section 21 rules. Therefore, these landlords are unable to serve a valid Section 21 notice. Given landlords need to serve this notice to terminate a rental agreement legally, it is an essential matter for landlords.

As of October 2018, rental properties must hold an E rating or higher to be suitable for letting purposes. Any landlord that lets property which fails to meet this standard faces a fine of up to £4,000.

The EPC lasts for ten years unless there has been extensive renovation work at the property. If a landlord has undertaken considerable renovation work and believes the energy efficiency rating has improved, they can voluntarily obtain a new EPC. A higher EPC rating may make a rental property more appealing to prospective tenants, and it may allow landlords to charge a higher rental fee. Therefore, many landlords see the benefit of improving the energy rating of a home and having the EPC documentation to prove this.

If you’re a Huddersfield landlord looking for guidance in EPC regulations, please get in touch. At ADM Residential, we aim to provide you with the best standard of support for all letting matters.