If you’re a landlord, then you’ll undoubtedly be aware of the importance of having an Energy Performance Certificate – otherwise known as an EPC. In short, an EPC provides the details of a property’s energy efficiency and CO2 emissions. But are you prepared for the up-and-coming changes that are taking place in April? As a landlord, we would advise that it’s vital for you to completely familiarise yourself with the changes, and take the necessary action, sooner rather than later.
The property experts here at Shortland Horne have put together this handy guide, created especially for landlords, so they know what to expect ahead of the next round of EPC regulation changes.
What is an EPC?
As mentioned an EPIC includes all of the information surrounding a property’s energy use, as well as its typical energy costs – which in turn, will show the environmental impact the building is having. It does this by assigning the property an energy efficiency rating between A to G, with A being the most efficient, and G being the least.
Who carries out an EPC and long is it valid for?
An EPC is a legal requirement, that must be carried out by a qualified Domestic Energy Assessor and is valid for 10 years – although, when it runs out, you’ll only be required to get a new one if you are starting a new tenancy agreement or selling the property. Note, as a landlord, you’ll need to give the tenants 24 hours’ notice of the assessment being done. The assessor will provide an EPC by looking at factors including the likes of the wall, floor and roof insulation, lighting, as well as boiler efficiency.
An EPC tends to take around an hour and will cost approximately £70.
What EPC changes are being made?
As part of the government’s bid to meet net zero carbon emissions by 2050 – which has shifted the focus onto landlords, and how they can do their bit to create a more sustainable future. Currently, landlords must ensure that their rented properties have a minimum EPC rating of E (a change that was bought in, in 2018). However, as of 1st April 2023, the requirement will be for rented properties must have an EPC rating of E or less, for new or existing properties.
Be warned the penalty for not having a valid EPC can be pretty hefty, with fine charges rising to £30,000 by 2025.
Will the changes impact a landlord’s buy-to-let options
It’s worth noting that the majority of banks are getting stricter when it comes to EPCs, which means they might not accept properties on a buy-to-let basis which falls below the current regulations.
How can landlords prepare for the change?
To prevent unnecessary costs, landlords should stay up to date with information, as regulations change. Landlords must also put plans in place to make their properties more energy efficient – this could include the likes of:
- Better insulation
- Improved heating systems
- Double glazed windows
- Energy efficient doors
Are there any exemptions to the changes?
There are occasions, in which an EPC might be exempt, including:
- Listed or protect buildings (that could be impacted if any improvements or house modifications are made)
- Temporary building that will be used for up to two years
- Detached building with floor space of 50 metres or less
- Buildings that are due to be demolished
- Some holiday rentals
The future of EPCs
By 2028 – if not 2025 – the EPC requirements could change to C or above – although this hasn’t been finalised yet.
Are you a landlord? Do you need expert advice?
We get it, being a landlord can be incredibly stressful – it’s time to get in touch with the team at Shortland Horne. Based in Coventry, we are your local friendly and professional property experts, supporting landlords across the Midlands.