Six months ago, new EPC regulations kicked in, making it illegal to let a property below a minimum energy efficient level in any property.
If you don’t know what “EPC” stands for, this is most definitely the guide for you (though you might want to head back to a beginners’ guide to being a landlord first!).
And if you’re looking for tips to improve the EPC of your rental property, then it’s for you too.
What is an EPC?
EPC stands for Energy Performance Certificate. Since 2007, we’ve used them to measure the energy efficiency of properties in Wales and England. You can’t let, sell or construct a building without one, and they last for 10 years.
EPCs work on a scale of bands from A to G. A-graded homes make the smallest impact on the environment with lower CO2 emissions. They tend to have the lowest fuel bills too. Big tick for buyers and renters there.
At the other end of the scale, the lower-graded properties are the ones that are less energy efficient, with higher running costs to boot.
The average energy efficiency rating is currently band D, so there’s plenty of work to be done across the country (and you can click here if you’d like to find out more about the Green Homes Grant which is available to landlords).
Not only does an EPC outline the property’s energy use and typical costs but it also lays out recommendations for reducing energy consumption, which should lead to money being saved every month.
Which properties need an EPC?
The rules differ slightly depending on the sort of property you’re letting, and a couple of property types don’t require one at all. We’ve drawn up this handy table to lay it all out in simple terms for you – check it out below.
| Type of property | Does it need an EPC? | How many EPCs are required? |
|---|---|---|
| Individual house | Yes | One |
| Self-contained flat | Yes | One per flat |
| Bedsits or room lets where there’s a shared kitchen, loo and/or bathroom | No | N/A |
| Shared flats/houses | Yes | One for the whole house |
| Mixed self-contained and non-self-contained accommodation | Yes | One per unit (but no EPC for the remainder of the property) |
| A room in a hall of residence or hostel | No | N/A |
What are the new EPC rules as of April 2020?
It wasn’t a huge change, but it’s still significant enough that you need to know about it.
In April 2018, it became a legal requirement for properties to have a minimum EPC rating of band E before you could let them out. Back then, there was a sort of grace period, so the regulations only applied for new tenancies to new or existing tenants.
But now, under the new 2020 regulations, the same goes for all tenancies. Which means:
You cannot grant a new tenancy, renew a tenancy or continue to let a property where the EPC is below band E.
What’s more, property experts reckon that the minimum requirement will be raised to band D from 2025, to help the UK reach its net zero emissions target by 2050.
What are the fines?
So if you’ve got a property that’s not up to scratch on the green front, you need to make changes straight away.
It’s a £5,000 fine for domestic properties and as much as £150,000 for non-domestic properties.
One to take seriously then! The £200 per property fixed penalty for failing to get an EPC at all pales in comparison.
How do you get an EPC?
Not only do you need an EPC to be able to let your property, but tenants also have the right to request one at any time. So if you haven’t already, it’s time to get one now.
You’ll need an accredited energy assessor to go ahead and carry out an energy assessment on your property for you.
They’ll look at your heating systems and controls, take measurements and photos, so they’ll need access to all the rooms in the dwelling – including the loft.
Arranging EPCs and other necessary documentation for any rental property is part of the work we do at our back office for property entrepreneurs like you. So if you want to take another job off your to-do list, tidy up your headspace and enjoy a whole load of other benefits to boot, don’t hesitate to get in touch.
What do you do if your property is rated below band E?
If you need to make improvements in your property, there are a number of fairly simple steps you can take.
They’re not all inexpensive, but well worth the investment if it means you can legally let your property, avoid a whopper of a fine, and make savings in utility bills going forward.
Here are five things you can do that should bring your property out of the red zone:
1. Upgrade your light bulbs
If you’re just below the band E boundary, switching from halogen to LED light bulbs could tip your property over the edge (in a good way!).
2. Install insulation
Installing insulation that’s at least 270mm thick into your loft can make a huge difference. Insulation is relatively cheap and you can add it to your walls too.
3. Invest in double glazing
Doesn’t matter how great your heating system is if all the warmth is escaping through old, single-glazed windows. New double glazing should boost your EPC by 5-10 points.
4. Replace your boiler
If your property’s running on an old boiler, installing a new condensing model can create a significant improvement. Pair it with a smart meter, and you’ll maximise the impact!
5. Introduce another efficient source of heat
If you’re really committed, you could even install a wood-burning stove for greater fuel efficiency and reduced long-term costs.
At Hello Owl, we’re here to help landlords like you stick to the rules, run properties better, maximise portfolios and – ultimately – spend more time with the people you love. Want in? Give us a call on 020 3432 3888..
