What is an EPC and why is it important for a rental property?

An EPC (Energy Performance Certificate) provides any potential Contract Holder or buyer with the energy efficiency of a property and taken out it is valid for 10 years. This blog will cover the importance of an EPC in letting a property and how improving the rating can be beneficial for both letting and selling.

In Wales, a property cannot be legally let without a valid EPC of rating ‘E’ or above. If you are found to have no EPC, you may be fined up to £5,000 by the local Council. The Minimum Energy Efficiency Standards (MEES) apply to all existing tenancies – not just new contracts or renewals and this is where some landlords are not currently compliant. As a Landlord, you are legally obligated to give a copy of the EPC, the Government’s 'How to Rent' guide, plus your EICR and Gas Safety Certificate at the beginning of a Contract. If you don’t supply your Contract Holder with these legally required documents, you won’t be able to issue a Notice to end the Contract in any scenario.

In the UK at least 18 million homes have an EPC rating of D or below, but what does that matter you might ask? Ultimately, a lower rating results in pushing up gas and electricity bills, which could be off putting for any potential renters take out buyers. Rightmove is urging the Government to prioritise making green home incentives available to as many homes as possible, which would be hugely beneficial to Landlords and Contract Holders. Let’s be honest, in the current climate everyone is looking for ways to save a few pounds on their monthly expenses.

Your current EPC will provide a breakdown of which improvements could increase the rating as well as the potential costs and savings. The main areas to focus on are:

1. The heating system is functioning efficiently and effectively.
2. Double or triple-glazed windows and doors are in place to avoid drafts and prevent heat loss.
3. Insulation of the walls, attic and floors to again prevent heat loss.

There are also some very simple and low costing things that can be put in place that can have an impact on increasing an EPC’s rating, like changing lightbulbs to LED and insulating pipes/tanks.

Making improvements to the EPC rating is better to be considered as an investment than a cost as Contract Holders are looking for homes that are cost effective to heat and light. These actions could result in your property letting far quicker which means less time without an income! It’s also worth considering that upgrades to energy efficiency will help protect and may even improve the overall value of the property, which is an added bonus should you decide to sell in coming years.