The government is currently consulting on potential amendments to the current Energy Performance Certificate (EPC) system. With that in mind we take a closer look at EPCs, what they are, the current law around them, and how they could change. This information will be of particular importance for residential, HMO, and short term lettings landlords, and owners of heritage buildings.
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) is a requirement for all building units that are sold, rented, or constructed. This is so the buyer, renter, or new owner can make judgments and comparisons on the energy efficiency of a property before deciding whether to move in.The EPC certificate is graded on a simple scale of A to G, with A being the most efficient. The idea being that the more energy efficient a property is, the cheaper the running costs will be.
The Government’s aim is to improve the energy efficiency of our buildings.
The law concerning residential properties
The Energy Performance of Buildings (England and Wales) Regulations 2012 set out the current requirements. These regulations came into force on 9 January 2013.Government regulations require all rental properties to have an EPC rating of A - E (some exemptions allow for properties below EPC rating E to be let in certain circumstances, for example heritage buildings).
An EPC is given a unique code or reference number and is recorded on a centralised register.
Failure to provide an EPC can result in fines and corrective enforcement action.
Buildings in Scotland and Northern Ireland are subject to different rules.
Private renting in England and Wales
An EPC must be commissioned before a property is marketed for sale or let. The EPC is prepared by an accredited assessor.The EPC certificate is valid for 10 years.
EPC’s must be made available free of charge to the potential tenant or new owner, by the property owner and/or landlord.
Holiday lettings
Exemptions apply for some forms of short term, furnished holiday lets where the occupiers are not responsible for the energy costs.Frequently asked questions about Energy Performance Certificates
Q. What if the EPC expires during the tenancy, do I have to get another one?A. EPCs are required in all instances of sale or rent at the outset of the decision making process, before moving into a property.
Q. What if the EPC certificate on my tenancy expires and a new tenancy is put in place will a new EPC be required.
A. If the same tenancy is renewed or extended to the same tenant, then this may not be a transaction that is considered a sale or a let.
Q. I rent a room in a HMO property, is an EPC required?
A. If the room is not a building unit designed for separate use, an EPC isn’t presently required.
**Note - all these questions are addressed in the proposed reforms to the sector**
Reforms to the Energy Performance Buildings regime
On 04 December 2024 the Government published an open consultation to the Energy Performance of Buildings regime seeking to clarify and consolidate existing regulations and to improve data management and quality controls.Amendments proposed include:
· EPC’s to provide a wider range of higher quality building performance data. This data may, for example, assist new homeowners and renters determine eligibility for schemes to assist in meeting government targets, and provide more accurate and reliable information to support policymakers in tackling fuel poverty and carbon emissions.
· Reducing the validity period of EPCs’ to give more frequent snapshots which would be of more information benefit for private rented sector tenants and landlords.
· Requiring a valid EPC throughout the tenancy period.
· Requiring a valid EPC for any residential property at the point of marketing, with no lead in time exemption.
· Requiring valid EPC’s for short term lets, HMO’s, and heritage buildings.
The aim is to achieve national key goals including reaching net-zero emissions by 2050.
The consultation runs for 12 weeks until 26 February 2025. Responses to the survey can be made here: Reforms to Energy Performance of Buildings regime survey
The Warm Homes plan
The Department for Energy Security and Net Zero within the new Labour Government has confirmed that it intends to ensure that all rental property will have to meet an EPC banding of A B or C by 2030. This includes local and social housing providers.Presently social rented homes have no energy efficiency standard at all.
The government has said that it will consult on proposal for private and social rented homes to achieve Energy Performance Certificate C or equivalent by 2030.
A new Warm Homes grant has been announced. This is a Local Grant to help low-income homeowners and private tenants with energy performance upgrades and cleaner heating to support social housing providers and tenants.
