What Is an Energy Performance Certificate?

A key responsibility of landlords is to ensure their property has a valid Energy Performance Certificate (EPC). Here, our experts explain what an EPC is, how to obtain one as a landlord, and the consequences of not having one. 

As a landlord, there are a number of legal requirements that you must meet to avoid the risk of legal trouble or disputes with tenants. One such requirement is having a valid Energy Performance Certificate (EPC) for your property, and providing it to any new tenant before they move in. An EPC not only provides a clear assessment of your property’s energy efficiency but also offers practical recommendations for improvement. 

In this guide, the experienced landlord solicitors at Percy Hughes & Roberts will walk you through everything you need to know about Energy Performance Certificates, from what they are and how to obtain one, to the legal implications of non-compliance and how to tell whether your property is energy efficient or not.

If you have any questions we have not covered, our specialist landlord solicitors are able to answer your landlord query. You can contact us by completing the enquiry form below or by calling 0151 666 9090.

What Is an Energy Performance Certificate?  

An EPC is an essential document that evaluates the energy efficiency of a property. It provides a comprehensive overview of how efficiently a property uses energy, along with estimated energy costs and the impact on carbon emissions. The certificate assigns a rating on a scale from A (most efficient) to G (least efficient) to give a clear snapshot of the property’s current performance.

For landlords, an EPC is more than just a legal requirement - it is a valuable resource. It can help you to identify potential improvements to enhance the energy efficiency of your property. These improvements can lower energy bills for you or your tenants and make your property more profitable and more attractive in a competitive rental market.

EPCs are valid for 10 years from the date of issue, meaning that as long as your certificate is up to date, you are compliant. However, if you make significant energy-related improvements to your property, you may want to obtain a new EPC to reflect the improvements in the home's energy efficiency. This can positively impact your property’s appeal and potentially increase rental value, especially if it results in a higher energy rating.

Example EPC:

Why Do Landlords Need an EPC?

For landlords, the need for an Energy Performance Certificate is first and foremost a legal requirement. Under the Energy Performance of Buildings Regulations, every property that is rented, sold, or newly built must have a valid EPC. This certificate must be in place before the property is marketed, and failure to comply can lead to serious consequences.

Here are the key points:

• Rental properties in England and Wales must have an EPC rating of at least E, as required by UK law.

• If your property does not meet this standard, you are legally obligated to make the necessary improvements. 

• Failure to comply with this requirement can result in fines of up to £5,000, and your property may be deemed unlettable until the issues are resolved.

A valid EPC ensures that you are fully compliant with the law, which helps to prevent potential disputes with tenants and avoid the costly penalties associated with non-compliance. 

How Do Landlords Get an EPC?

Obtaining an EPC is a relatively straightforward process, but it is important that landlords follow the correct steps to avoid any potential pitfalls along the way. Here is how you can secure a valid EPC for your rental property:

1. Find an accredited assessor: The first step is to engage an accredited domestic energy assessor. These professionals are accredited to carry out energy assessments and produce EPCs. You can easily find an accredited energy assessor through the official EPC register for England and Wales.

2. Schedule the assessment: Once you have chosen an assessor, schedule an assessment at a time that is convenient for both you and, if the property is occupied, your tenants. It is important to provide tenants with at least 24 hours’ notice, as required by law, to comply with the regulations regarding property access.

3. The assessment process: During the visit, the assessor will conduct a thorough evaluation of your property. They will examine key features such as insulation, heating systems, windows, and other elements that affect energy efficiency. This typically takes about 30 to 45 minutes, depending on the size and condition of the property.

4. Receive the EPC: After the assessment, the assessor will compile their findings and produce the EPC. This document will include the property’s energy efficiency rating, ranging from A (most efficient) to G (least efficient), along with recommendations for improving energy performance. The certificate is then registered and made available on the EPC register.

5. EPC validity: The EPC is valid for 10 years from the date of issue. It is advisable to keep this document accessible and up to date, particularly when renewing tenancies or marketing the property. If you have made significant improvements to the property’s energy efficiency, consider obtaining a new EPC to reflect these changes.

6. Costs: The cost of obtaining an EPC can vary depending on the size and location of the property, but it generally ranges between £60 and £120.

Not only is the EPC a legal requirement, but the costs are often overshadowed by the potential energy costs savings you could make by implementing the recommended measures.

What Are the Consequences of Not Having a Valid EPC?

Failing to have a valid Energy Performance Certificate for your rental property is a breach of your legal obligations that can lead to significant consequences. It can affect everything from your relationship with your tenants to your ability to carry out an eviction if there are problems with the tenant. Here are a few of repercussions if you do not have a legitimate certificate: 

Financial Penalties

The most immediate consequence of not having a valid EPC is the risk of a financial penalty. Local authorities are empowered to impose fines on landlords who fail to comply with EPC regulations. In England and Wales, the fine can be as high as £5,000 per property. This penalty can be issued for each breach, meaning if multiple properties are non-compliant, the financial impact could be substantial.

Legal Ineligibility to Rent

Without a valid EPC you cannot legally rent out your property, which means it is much more cost-effective to secure Energy Performance Certificates than to lose income from not having them in place. Additionally, if a tenant is already occupying the property and it is discovered that there is no valid EPC, you could face legal action, including the invalidation of a Section 21 notice. This can make it difficult to regain possession of your property.

Complications in Selling the Property

An EPC is a mandatory requirement if you decide to sell your property. Without one, you could face delays in the sale process or even lose potential buyers. In addition to this, the absence of an EPC might give the impression that the property is not well-maintained or legally compliant, and further complicate the sale.

Damage to Reputation

Beyond financial and legal consequences, not having a valid EPC can harm your reputation as a landlord. Tenants are increasingly aware of their rights and are likely to be deterred by a landlord who does not comply with legal standards. This could make it harder to attract quality tenants in the future, lead to longer vacancy periods and reduce rental income.

Increased Scrutiny

Non-compliance with EPC regulations could attract additional scrutiny from regulatory bodies and local authorities. This could lead to more frequent inspections and a greater likelihood of being fined for other potential breaches of property management laws.

How Can Percy Hughes & Roberts Help?

Ensuring that your property is compliant with Energy Performance Certificate regulations is a vital part of responsible property management. Not only does it keep you on the right side of the law, but it also enhances the value and appeal of your property in a competitive rental market, and offers an opportunity to optimise your property's potential energy efficiency based on the energy assessment recommendations.

At Percy Hughes & Roberts Solicitors, we are committed to helping landlords like you navigate these responsibilities with ease and confidence. Whether you need advice on EPC compliance or any other aspect of landlord law, our experienced team is here to support you.

For more information about our landlord services, contact our expert solicitors today. Call us on 0151 666 9090, or send us your query by email by filling in our online contact form.