If you’ve had any interaction with the housing market, it’s likely you’ll have come across EPCs. EPCs are important pieces of information for buyers and tenants when exploring properties, detailing energy performance and potential living costs in the future. For landlords and those selling their houses, EPCs are a legal requirement. To help make sure everyone understands what these certificates are and why they’re necessary, we’ve created this handy guide.
What is an energy performance certificate?
An Energy Performance Certificate or EPC is critical if you want to sell or rent your property. Valid for 10 years upon issue, these certificates detail the energy efficiency of a building using a rating system of A through to G. EPCs are vital for homebuyers and prospective tenants, allowing them to understand the typical energy consumption of a property and therefore the costs they are likely to face if they choose to live there. EPC certificates also often provide recommendations on how to improve the property’s score and make it fully compliant if it is falling short.
Are EPCs a legal requirement?
Yes. If a building is sold, rented out, or modified, it will need to have an EPC certificate that potential tenants or buyers can view. This is so they can fully understand the likely energy costs they will face when they move in. If you don’t have an EPC certificate or your EPC rating is below the minimum required (currently E), you could be charged a penalty of up to £5,000 by your local authority.
How long does an EPC last?
EPC certificates are valid for 10 years once they have been issued, and can be used for multiple tenancies within that period if you’re a landlord. That means you’ll only have to pay for one certificate to be issued (provided your property meets the minimum requirements, of course!).
What information is included in an EPC?
The EPC report contains details of the property’s energy usage and current energy costs. It also provide guidance on measures landlords or homeowners can take to improve current performance. The property in question is also given a rating for its overall energy efficiency according to a rating system of A through G with A being the most efficient and G being the least efficient. Alongside this rating, there will be the potential rating a property might achieve if the recommended changes are made.
EPC for landlords.
EPCs with a minimum rating of E are a legal requirement for landlords of domestic private rented properties in England and Wales. Landlords must have a valid certificate whilst renting out a property and before beginning any new tenancies.