Landlords are required by law to have an energy performance certificate (EPC) before marketing their properties for rent. All rental properties must meet minimum energy efficiency standards – and non-compliance penalties are significant.
So, what are your legal responsibilities as a landlord in areas like Wimbledon Park, Wimbledon Village and Kingston? We explore the key responsibilities you’ll need to follow, particularly if you own an older, period property.
Let us answer your most frequently asked questions on energy performance certificates for rental properties – including the plans for EPC legislation changes.
An energy performance certificate shows how energy efficient a property is. The property is given an energy rating from A (most efficient) to G (least efficient). Properties with better ratings usually have lower energy bills and a smaller environmental footprint. The EPC also includes a list of recommendations detailing how to improve the property’s energy rating.
At the top of an EPC certificate is a chart, like the one below, that shows the current energy efficiency rating and the rating that could be achieved if the recommendations are implemented. Prospective tenants can view this information to compare rental properties’ relative running costs and environmental impact.
The current legislation took effect on 1st April 2020, covering new and existing tenancies. You are legally required to make an EPC available to prospective tenants when you begin marketing the property to rent.
Residential landlords and letting agents should include the building’s EPC rating on marketing materials. It’s a legal requirement to provide your tenants with a valid EPC at the beginning of the tenancy. Failure to do this will prevent landlords from serving a section 21 notice to evict their tenants.
Under the current rules, properties must achieve a Minimum Energy Efficiency Standard (MEES) of E. If your property is in band F or G, you must improve the property’s rating to E (with a cost cap of £3,500). If you have made all suggested improvements, or the EPC report says you can’t improve, you can apply for an exemption. Exemptions last for 5 years.
No, the new EPC regulations planned for 2025 are no longer applicable.
The previous plans to upgrade the minimum EPC rating to C or higher have been pushed back to 2030. Even so, the government is currently holding a consultation on the issue, with plans to put a more concrete plan and timeline into place.
The MEES changes that were outlined by the Conservative government never progressed far enough to become law. However, the Labour government has now confirmed that they will still introduce MEES changes, including the requirement for new tenancies for privately rented homes to achieve a minimum rating of C.
Other changes that could come into force is an increase to the cost cap for improvements from £3,500 to £10,000, although this has not yet been confirmed. The previous plans also included increasing the penalty for not having a valid EPC from £5,000 to £30,000, which again, could be included in the new rules when they are introduced.
The new rules aim to improve the energy efficiency of housing and help achieve the government’s target of net-zero emissions by 2050.
The good news for south-west London landlords is that most properties in the area do not require any improvement to achieve an EPC rating of E. Landlords who make improvements to enhance their properties’ energy efficiency usually recoup most of the costs as the property will be more attractive to potential tenants, reducing the likelihood of void periods and often commanding higher rents.
EPC ratings are calculated by Standard Assessment Procedure (SAP) points, and you can roughly calculate how any changes will impact your score. To achieve the highest rating, A, you need 92-100 points, 81-91 for a B rating, 69-80 for C, 55-68 for D and 39-54 to score an E rating. Raise your rating by making energy efficiency improvements, such as:
A quarter of heat is lost through the roof, and a third through the walls. Cavity wall insulation is suitable for most London homes and can add 5-10 points. Upgrading to 270mm loft insulation could add 2-15 points.
Adding double-glazed windows could raise your EPC score by 5-10 points. Triple glazing is increasingly popular, but the cost is higher.
Upgrading to a more energy efficient boiler can lift your rating as much as 40 points. Although costly, this is a considerable increase in energy efficiency and potentially a big draw for tenants since it typically lowers bills.
Insulating your water heater cylinder is another recommendation often found in EPCs. A hot water cylinder jacket is cheap and easy to fit. Check the thickness if you already have a jacket around your tank. It should be at least 80mm thick; if not, consider buying a new one. Improving your water heater cylinder insulation will enhance your EPC rating.
Switching to thermostatic radiator valves can add up to 5 points. This can lower bills, which is another plus for potential tenants.
Installing energy efficient LED light bulbs is relatively cheap and easy. This only adds around 2 points, but every effort counts.
Investing in renewable energy sources such as solar panels, heat pumps or biomass boilers can improve the energy performance of your property and can have long term energy cost saving benefits.
This may also help to attract tenants looking for lower energy costs or who want to live in a more energy efficient home.
Homes can lose up to 30% of heat through draughts around windows and doors. There are several draught proofing solutions you can use, including sealing gaps and cracks with caulk.
Quick and low-cost draught proofing like installing brush seals or self-adhesive strips can also be effective. Thermal curtains are also good for preventing heat loss.
There are several grants that landlords may be able to apply for to help with energy efficiency improvement costs, including the Warm Homes: Local Grant scheme. This is available for properties that have ratings of D to G and could provide up to £30,000 in funding for a landlord’s first property and £15,000 for additional properties. Properties must meet certain criteria to be eligible for funding, including tenants being low-income households.
You can also apply for a grant through the government’s boiler upgrade scheme to cover part of the cost of replacing a gas boiler with a heat pump or biomass boiler. It is worth checking with local authorities to see if there are any current schemes or grants, as this can change on a regular basis.
An accredited energy assessor must produce Your Energy Performance Certificate. Find one in your local area from the government register. If you use a letting agent, they will be able to arrange one for you.
The energy assessor will visit your property and assess key areas that determine the property’s energy efficiency. This includes:
The assessor inputs their observations into a software program that calculates the energy efficiency rating and produces a certificate. The procedure is non-invasive, so the assessor may have to make assumptions based on the age and type of property. Once the assessment has taken place, you will be issued an EPC certificate, valid for 10 years.
An EPC will include the following information:
There is no fixed cost for an EPC; it depends on the size and type of your rental property. Expect to pay between £75 and £100 for a four-bedroom house. Prices vary between assessors, so you may save money by getting several quotes.
Certain properties do not require an EPC certificate. These include:
There is also an exemption for properties where landlords have recently become owners of the property to provide them with adequate time to implement energy efficiency improvements.
Some properties may also have a high cost exemption, if the cost to make an improvement will be above £3,500.
Landlords can face a £500 fine for failing to supply an energy performance certificate. Landlords found renting a property with an EPC rating of F or G (without a valid exception) face penalty charges of up to £5,000 per property.
You must renew your rental property’s EPC every 10 years. You may want to renew earlier than this if you have undertaken work that would improve your rating.
You can retrieve your property’s energy performance certificate from the government’s online database for properties in England and Wales.
There are separate registers for properties in Scotland and Northern Ireland:
For advice on a new EPC certificate or an up-to-date rental valuation of your property in Wimbledon Chase, Wimbledon Park, Merton Park, Ham or beyond – contact Robert Holmes & Co today.
Ticking off the items on this list will help you keep track of your legal responsibilities when renting out a property.
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