By now, we’re pretty used to seeing those coloured charts which describe energy ratings and scores of a property – but do most people actually realise what they mean?
And do you know if and when you need one for your property?

What they are

Introduced in 2007, EPCs – or ‘Energy Performance Certificates’ were meant to be a cohesive way of comparing properties by their energy usage and environmental impact.
They produce a rating of A through G, and as well as detailing ways on how to improve the rating, the certificate also gives an idea of how expensive the utilities may be to run the property.

The EPC assessor will look at things such as the property’s insulation, flooring, glazing and the lighting, amongst other things.

For lettings

Since 2018 it has been a legal requirement for all rental properties to have a valid EPC.

EPCs last 10 years, or need to be done if you make substantial changes to your property (in which case the rating should of course improve, not worsen!)
The better your insulation, glazing, lighting etc is, the less energy loss your property should suffer and thus the cheaper the electricity and gas bills should be.

You also need to ensure that you serve this report specifically and directly to your tenants when they move in (even if it was in your marketing material when they first enquired).  Failure to do so can result in you not being able to serve notice if and when you need to!

For sales

You do also need an EPC if you are selling your property.

If you have bought your property and not made substantial changes within less than 10 years, the same certificate when you bought it could be sufficient and still in date.  If not you will need to get a new one done.

Changes coming?

There has been a lot of talk about bringing in regulations stopping landlords from renting out their property is the EPC rating is too low.

As of 1st April 2023 you cannot continue to rent out your property as a landlord if it is rated below an ‘E’, unless it has been granted specific exemption (due to various factors such as the cost of changes to bring the rating up being more than a certain percentage cost of the property itself).

It has been suggested that this threshold should be raised even higher to a ‘C’ or above, with dates of 2025 and 2027 suggested, though nothing is firm yet, but we do have a new Government in with a strong ‘green agenda’.  It is best practice just in case to do what you can to bring your property up to a C – not only is it more environmentally friendly, it means cheaper bills, and could also increase its purchase price in the future.

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