- November 22, 2022
- EPC News
Energy cost increases and climate change. Both are hot concerns for 2022, but the government has been paying close attention to them at least since the introduction of Energy Performance Certificates (EPCs) in 2007. EPCs provide information on a building's energy efficiency to potential purchasers or renters and may be used to project future utility expenditures. All privately leased homes in England and Wales must meet the Minimum Energy Efficiency Standards (MEES), with stricter guidelines to follow starting in 2025.
What Are the Latest Rules?
Right now, all landlords are required to guarantee that their rental units have an EPC rating or above. Therefore, a property must receive more than 39 points in an EPC survey carried out by a certified EPC assessor. EPC evaluations take into account a variety of variables, such as the amount of energy used per square meter and the level of carbon dioxide emissions (in tones per year).
All new tenancies must comply with the minimum EPC band of C starting in 2025, while current tenancies must do so starting in 2028.
Is It a Legal Requirement to Have an EPC When Renting?
Every time you sell, rent, or modify (construct) a property, you are legally required to acquire an EPC. This rule went into effect on October 1st, 2008.
Three different EPC types are available:
- The Domestic EPC for residential dwellings contains a general energy rating, a rating for environmental effect, and a prospective rating indicator.
- The Commercial EPC for commercial premises contains the same data as a Domestic EPC as well as additional, detailed information.
- The Public Display Energy Certificate (DEC), which all public buildings must display in a visible location and which provides information on the actual energy use of the facility.
How Often Does an EPC Rating Need to Be Done on a Rented Property?
An EPC can be used for more than one tenancy in your rental property, and it is valid for ten years after it is provided to a property.
Which Properties Are Exempt?
The government is aware that there are some circumstances in which making property renovations for energy efficiency is not practicable. You may request an exception from the Band E requirement in following circumstances.
Currently the exemptions include:
- High Cost Exemption: If installing the lowest suggested solution will cost more than £3,500, you are not permitted to make any improvements to your home (including VAT).
- Exemption for wall insulation applies when a professional certifies in writing that installing insulation will negatively affect the fabric or structure of the property (or the building in which it is located), and this is the only countermeasure you can take.
- Exemption for Third Party Consent: If you must receive permission from a third party, such as a tenant, superior landlord, mortgagee, freeholder, or the planning department, and either permission is not possible to obtain or you are unable to properly abide by any terms imposed.
- Property Devaluation Exemption: When proof that the installation of the energy efficiency measures will cause the property to lose more than 5% of its value is presented by a chartered surveyor registered with the Royal Institution of Chartered Surveyors (RICS).
- New Landlords: If you’ve just started renting out property, you may be eligible for a temporary exemption for six months if certain requirements are completed.
The exemptions are valid for five years, with the exception of the Temporary Exemption for New Landlords. You must make a reasonable effort to raise the property’s EPC rating to E before the exemption expires, or you must reapply for a new exemption.
