What does EPC stand for?
EPC stands for Energy Performance Certificate, and it's used for measuring the energy efficiency of a property, usually done on a scale of A-G. A stands for the highest rating and G the lowest. EPC rating was introduced in England and Wales in 2007, and the document is always one of the requirements when selling or letting a property.
A potential renter or buyer can tell how energy efficient your property is from an EPC. The certificate provides details on the property's energy consumption, cost and proposes measures to reduce energy consumption to make the property more energy-efficient. An EPC also provides details on the property's location, size, age, and condition. These data will come in handy when the assessor provides recommendations for energy efficiency. An average UK property is rated at the D or E band.
Why do Landlords need an EPC?
An EPC is a legal document, and a landlord lacking an EPC during property letting or sale is breaking the law. As a landlord, you will need to furnish your prospective customer with the EPC document as early as possible. Similarly, a landlord's advertisements on house letting or sale must be accompanied by an EPC rating. Suppose the EPC has expired or lived beyond its validity period; you will need to seek a new EPC before the property goes to market. Moreover, landlords selling their property through an agent should use the agents to help them obtain or renew the new EPC suppose the document has expired. Besides, whether you are planning to sell your property or not, it's good to have an energy certificate for your property to help you understand how energy efficient your property is and what best steps you can take to save on energy bills.
Other Landlords Certificates Required Include
When is an EPC not required?
There are instances where an EPC isn't a requirement on the property, as we list below.
If your home has had an EPC within the last ten years
A landlord won't require an EPC if their property has had one within ten years. However, if you take your property off the market for four weeks and the EPC's validity lapses, you will need to obtain a new one.
How long does an EPC last?
An EPC's validity lasts ten years, after which the landlord will need to seek a renewal. If in doubt about your EPC's validity, check with the Ministry of Housing, Communities, and Local Government. Head over to their website and fill in the relevant details. You should see your EPC's validity if your address is listed. However, with the new EPC regulations about to come into effect, EPC's validity period for a property could even be shorter.
What is involved in Obtaining an EPC?
If you are a landlord looking to obtain an EPC on your property for the first time, seek the services of an accredited Energy Assessor to conduct an energy assessment on your property. When an Energy Assessor visits your property, they will need to access all rooms and gather as much data as possible. The assessor will inspect heating systems and collect key data from the survey. The survey is in no way intrusive, and one shouldn't be worried about it. The time it takes to assess the property varies from one property to another. Once the assessment is complete, the Energy Assessor will file the information to produce an Energy Performance Certificate lodged at the Central Register.
What is involved in Obtaining an EPC?
If you are a landlord looking to obtain an EPC on your property for the first time, seek the services of an accredited Energy Assessor to conduct an energy assessment on your property. When an Energy Assessor visits your property, they will need to access all rooms and gather as much data as possible. The assessor will inspect heating systems and collect key data from the survey. The survey is in no way intrusive, and one shouldn't be worried about it. The time it takes to assess the property varies from one property to another. Once the assessment is complete, the Energy Assessor will file the information to produce an Energy Performance Certificate lodged at the Central Register.
Do I need an EPC for an Existing Tenancy?
A landlord is not obligated to immediately acquire a new EPC, suppose the existing one expires during the tenancy period. This is because that will require another inspection by an Energy Assessor. Given the long duration since the last inspection, it’s in the landlord's interest to do some home and environmental sound improvements before calling in an assessor.
EPC changes for Landlords
Recently, the UK government proposed new changes affecting energy performance certification regulations for domestic rentals in England and Wales. In the future, the minimum energy efficiency standards would shift from the current EPC rating of E allowed for rentals to a C rating. The proposed changes are likely to be implemented by early 2025. The changes have the goal of:
6 Ways Landlords Can Improve Their EPC Rating
Because of the proposed changes on EPC rating, commercial landlords need to improve the EPC rating on their properties. This section suggests six ways landlords can increase their property's EPC rating.
1. Improve house insulation
To reduce heating expenditures, landlords will need to insulate their properties. About a quarter of the household heat is lost through the roof. Heat is also lost through walls and floors. Some ideas landlords can tiptoe with is using lofty insulation that is considered easy and cheap to install.
2. Replace windows for double glazing
If the windows on your property are older, they are responsible for 40% heat loss on your property. You want to upgrade your windows to double or triple glazing to retain as much heat within the house. The result is reduced carbon footprint and less spending on energy for heating.
3. Replace the old boiler on the property with an energy-efficient boiler
To improve your EPC rating, you will need to phase out the old boiler with an EPC rating of G to the new energy-efficient boiler with an EPC rating of A. An A-rated boiler includes a programmer and a thermostat and is also cheaper to maintain. This will help to keep the water heating bills down.
4. Improve lighting on the property
Upgrading from old to LED light bulbs lowers a property's overall energy consumption. If you swap ten halogen bulbs for LED bulbs, you stand to save £112 over the long term.
5. Install renewable energy sources
If you have put in place all the energy-saving measures, you can take a step further and install renewable energy sources such as biomass boilers, solar panels, and ground source heat pumps. Renewable energy sources help you achieve the highest EPC rating for your property. A landlord could save up to £311 per year by installing solar panels in a G-rated semi-detached house.
6. Employ smart meter technology
To control energy consumption in their properties, perhaps landlords need to utilize smart meter technology that will enable them to easily and accurately monitor the energy consumption in their properties. A smart meter technology enables landlords to identify areas with the highest energy consumptions to make the necessary adjustments that will improve their EPC rating.