What is an EPC?
An Energy Performance Certificate (EPC) demonstrates how energy efficient a property is. It’s a legal requirement for landlords to provide an EPC, designed to help prospective tenants understand how energy-efficient a home is before they move in. EPCs are graded from A (most efficient) to G (least efficient) and include recommendations for improvements.
Why are EPCs important?
- Energy performance certificates help promote transparency in the rental sector. For tenants, they offer a clear view of expected energy costs
- For landlords, EPCs demonstrate compliance and can even enhance a property’s marketability
When do you need an EPC?
You’ll need a valid EPC if:
✅ You’re advertising a rental property
✅ You’re starting a new tenancy
✅ You’re selling the property
A valid EPC must be available as soon as the property is put on the market.
How are EPC Requirements Changing?
Current EPC Requirements:
- Domestic Minimum Energy Efficiency Standard (MEES) Regulations set minimum energy efficiency level for domestic private rented properties
- At present, all privately rented properties must have a minimum EPC rating of E to be legally let
- This is part of the government’s Minimum Energy Efficiency Standards (MEES) introduced to reduce energy use in the housing sector
- Since 1st April 2020, landlords could not let/continue to let properties covered by MEES Regulations if the EPC rating was below E (unless with a valid exemption)
- If you are currently letting a property with an EPC rating of F or G, you must immediately take action to improve the property’s rating
- If your property is empty and you have no plans to let it, you do not need to take any action
- These proposals are part of a wider push to meet climate targets. You can read more about the planned legislation in the government consultation update.
Upcoming Changes to Requirements
- New regulations mean that landlords with properties with an EPC rating of D or below will need to make improvements to raise their rating
- Non-compliance could result in fines reaching £30,000
- This requirement covers all privately rented homes/buy to lets
How Will These Changes Impact Landlords?
For landlords, there are financial considerations. Improving a property’s energy efficiency to meet a C rating could mean:
- Upgrading insulation
- Replacing inefficient heating systems
- Installing double or triple glazing
- Smart thermostats
- Improve draught-proofing
- Fit renewable energy sources such as solar panels where practical
Do landlords need a new EPC after upgrades?
Yes. If you’ve carried out any improvements that affect your property’s energy efficiency, it’s advisable to obtain a new energy performance certificate to reflect those changes – and to remain compliant if rules tighten.
Protecting Yourself with an Inventory Report
Energy upgrades should be recorded thoroughly in your property inventory. A professional inventory report not only documents the condition of energy-efficient improvements but also provides essential protection in the event of disputes, inspections, or tenancy changes.
At Eclipse Inventories, we encourage landlords to keep thorough records of all property improvements through professional inventory reports. This not only supports your EPC assessments but protects your investment as regulations continue to evolve.
How Will These Changes Impact Tenants?
Tenants may feel the impact of energy upgrades in several ways:
- Rent levels: Some landlords may increase rents to offset improvement costs
- Access for assessments: Tenants will need to allow access for EPC assessors, and must be notified in advance
However, the upside is that more efficient homes generally mean lower utility bills, which tenants will appreciate in the long run.
How To Improve Your EPC Rating as a Landlord
Improving your EPC rating doesn’t have to be overwhelming. Here’s how to get started…
1. Booking an EPC assessment
An EPC assessment usually costs between £60 and £120, depending on the size and location of the property. A certified assessor will evaluate
- Heating systems
- Insulation levels
- Windows and glazing
- Lighting and ventilation
2. Quick, low-cost improvements – some of the most effective EPC improvements are surprisingly simple:
- Install LED lighting throughout the property
- Fit draught excluders and seal gaps around windows and doors
- Upgrade to thermostatic radiator valves
- Add hot water tank insulation
3. Consider renewable energy
If you’re thinking long-term, investing in solar panels, air-source heat pumps, or smart energy systems can make a significant difference – not just to your EPC rating, but to the overall value and sustainability of your property.
Again, documenting these changes in your inventory ensures that all upgrades are properly recorded.
When Will You Need to Renew Your EPC?
Energy performance certificates are valid for 10 years. However, you may need to renew sooner if:
- You’ve made significant upgrades to the property
- New regulations require a higher rating and therefore you no longer comply
What Happens if You Don’t Comply?
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Letting a property without a valid or sufficient EPC can result in a civil penalty of up to £5,000 – and this could increase under future legislation. You can find detailed guidance on current EPC obligations on the UK Government’s landlord guide.
Final Thoughts
The landscape for EPC regulations is changing, and forward-thinking landlords will benefit from acting early. Improving your EPC rating isn’t just about compliance – it’s about creating a more desirable, efficient, and future-proof property.
Need support with preparing for the EPC changes ahead? We’re here to help you stay compliant, informed, and in control. Enquire today.
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📞 Call us: 020 3411 8090
📩 Email us: bookings@eclipseinventories.co.uk
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