Since 1st October 2008, landlords have been required to have an Energy Performance Certificate (EPC) when a property is let to a new tenant. The purpose of the EPC is to show prospective tenants the energy performance of the dwelling they are considering renting.
The EPC shows two things; the energy efficiency rating (relating to running costs) and the environmental impact rating (relating to the carbon dioxide emissions) of a dwelling. It is shown as coloured graphs similar to those found on, for example, fridges and other domestic appliances. The rating is also accompanied by a recommendation report that shows how to improve the dwelling’s energy efficiency.
Once an EPC is obtained it is valid for 10 years unless the property is sold and a new EPC must be obtained at that point.
The EPC should be arranged before the property is advertised and a copy must be available to tenants, free of charge, before they are given written details, arrange a viewing or agree a letting. The actual tenant who takes the property should be given a full copy of the EPC including the assessor’s recommendations.
It is a requirement to provide an EPC when the property is let as a separate (or self-contained) dwelling. This also applies if a whole house or flat is being let to a group of sharers on one contract. It is not a requirement to provide an EPC if only a single room in a house is being let or if a house is let room by room on separate contracts.
Advertising a property without a valid EPC can result in a potential £200 fixed penalty notice from trading standards.
EPCs are completed by registered Domestic Energy Assessors (DEAs). An assessor can be found at the EPC Register or The Business Directory - Energy Performance Certificates. Once commissioned, the EPC is valid for 10 years or until a new EPC is produced.
Two guides are available on CLG’s website, Energy performance certificates for dwellings in the social and private rented sectors: A guide for landlords and Energy performance certificates for dwellings in the social and private rented sectors: A guide for landlords and can be downloaded from Communities & Local Government EPCs A Landlords Guide and Communities & Local Government EPCs A Tenants Guide
Although the EPC may suggest a number of improvements that could be made there is no legal obligation to undertake any of these works, but it is advisable to discuss with prospective tenants which (if any) of the energy saving recommendations might be carried out or might already have been carried out. By being transparent about this and managing the tenant’s expectations a potential complaint may be avoided.
Quick Links:
The Business Directory - EPCs