Every rental property in England and Wales must have a valid Energy Performance Certificate before it can be let to tenants. The EPC rates the energy efficiency of the property on a scale from A (most efficient) to G (least efficient), and the current minimum standard requires a rating of E or above. Properties rated F or G cannot legally be rented out unless a valid exemption applies.
For landlords, EPCs are more than just a compliance requirement. They affect your property's appeal to tenants, its running costs, and potentially its capital value. With energy costs remaining a significant concern for renters, a higher EPC rating can make your property easier to let and justify higher rents.
Current EPC Requirements for Landlords
Since April 2020, the Minimum Energy Efficiency Standards (MEES) apply to all private rented properties in England and Wales, not just new tenancies. The key rules are:
- You must have a valid EPC before marketing a property to let
- The property must achieve a minimum EPC rating of E
- The EPC must be provided to prospective tenants before they sign a tenancy agreement
- EPCs are valid for 10 years from the date of issue
- Penalties for letting a sub-standard property can be up to £5,000
Proposed Changes: Will the Minimum Rise to C?
The government has previously consulted on raising the minimum EPC rating to C for new tenancies and eventually for all tenancies. While the timeline has been pushed back from earlier proposals, the direction of travel is clear: higher energy efficiency standards are coming for the private rented sector.
Landlords who are proactive about improving their properties' energy efficiency will be better positioned when stricter standards are introduced. Making improvements now, while funding and incentives may be available, is often more cost-effective than rushing to comply under a tight deadline.
How to Get an EPC
An EPC must be produced by an accredited Domestic Energy Assessor (DEA). The assessment takes around 45 minutes to an hour for a typical property. The assessor examines the building fabric, heating systems, insulation, windows, and lighting to calculate the energy rating.
The cost of an EPC assessment typically ranges from £60 to £120, depending on the property size and location. It is a tax-deductible expense for landlords, so record it in your expense tracking system.
Improving Your EPC Rating
If your property has a low EPC rating, there are several improvements you can make, roughly in order of cost-effectiveness:
Low-Cost Improvements (£100–£500)
- LED lighting: Replacing all bulbs with LEDs is one of the cheapest improvements
- Draught-proofing: Sealing gaps around windows, doors, and letterboxes
- Loft insulation top-up: Adding to existing insulation if below 270mm
- Hot water cylinder jacket: Insulating the hot water tank if not already done
- Thermostat and TRVs: Adding thermostatic radiator valves and a room thermostat
Medium-Cost Improvements (£500–£5,000)
- Cavity wall insulation: If the property has unfilled cavity walls, this offers significant savings
- Floor insulation: Insulating under suspended timber floors
- Double glazing: Replacing single-glazed windows (typically the most expensive item in this category)
- Boiler upgrade: Replacing an old G-rated boiler with a modern condensing boiler
Higher-Cost Improvements (£5,000+)
- External wall insulation: For solid-walled properties without cavity walls
- Heat pump installation: Air or ground source heat pumps to replace gas heating
- Solar panels: Generating renewable electricity on-site
The EPC report itself includes recommendations for improvements and estimates of the potential rating improvement each measure would deliver. Use this as your starting point for planning upgrades.
EPC Exemptions for Landlords
If your property cannot reach the minimum E rating despite reasonable investment, you may be able to register an exemption. The main exemption categories are:
- High cost exemption: Where the recommended improvements would cost more than £3,500 (including VAT), you can register a high cost exemption after making all improvements that fall within this cap
- Wall insulation exemption: Where a qualified surveyor confirms that cavity, external, or internal wall insulation would damage the property
- Consent exemption: Where you need a third party's consent (such as a planning authority or superior landlord) for an improvement and that consent has been refused or given with unreasonable conditions
- Devaluation exemption: Where an independent surveyor confirms that a recommended improvement would reduce the property's market value by more than 5%
Exemptions must be registered on the PRS Exemptions Register and are valid for five years. After that, you must reassess and either make improvements or register a new exemption.
Tracking EPC Dates with LandlordGuru
Because EPCs are valid for 10 years, it is easy to lose track of renewal dates, especially across a portfolio of properties. LandlordGuru's document vault stores your EPC certificates alongside gas safety certificates, electrical safety reports, and other compliance documents. Set expiry dates and receive notifications before renewal is due.
If you are planning property improvements to boost your EPC rating, track the costs as capital expenditure or allowable expenses (depending on the nature of the improvement) within LandlordGuru, ensuring they are correctly reflected in your MTD submissions.
Track All Your Compliance Deadlines
EPC, gas safety, electrical safety, and more. LandlordGuru's document vault keeps everything organised with automatic renewal reminders.
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