May 31, 2022

EPC Regulations, Explained

by Emma Jones

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What is the minimum EPC rating for a rental property?

From April 2018, it was announced that all properties rented out by landlord needed to have a minimum energy performance rating of E. The regulations were put in place to enforce energy efficiency improvements for domestic properties rented out in England and Wales. The intention was not only to reduce energy bills for the people living in them, but also to combat the CO2 emissions of the built environment.

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Who do EPC regulations apply to?

EPC regulations apply to anyone who owns a domestic private property in England and Wales and intends to either sell or rent it out to tenants. Essentially, if the following statements apply to you, the regulations will apply.

The property is let on an assured tenancy, regulated tenancy, or domestic agricultural tenancy.
The property is legally required to have an EPC (i.e., it has been marketed for sale, let or modified in the last decade).

How to get an EPC.

To get hold of an EPC certificate, an accredited assessor will need to conduct a survey of the property and issue an official rating. An easy way to do this is through your mortgage broker, who will be able to talk you through the process as it applies to your property. The certificate you receive will detail the current rating as well as outlining some steps you could take to improve it.

How to improve EPC rating.

There are various ways to boost the energy performance of your property and therefore its EPC rating. Some of the recommended measures include:

Improving insulation.
Draught proofing.
Using low energy lighting.
Installing solar panels.
Replacing windows with double glazing.

You may be pleased to know there is a cost cap. This is in place to prevent landlords from having to spend an unreasonable amount on energy efficiency improvements. If you cannot reach EPC E for £3,500 or less, you should make any improvements you can up to that amount, and then apply for an official exemption.

Upcoming EPC regulation changes.

EPC regulations are getting stricter and stricter in line with the government’s long term focus on improving the efficiency of the country’s housing stock. As well as meeting the current minimum rating of E, you should also bear in mind potential future changes to make sure you’re prepared. In fact, the minimum EPC rating required looks set to change to C from 31 December 2025, and 31 December 2028 for existing tenancies.

Emma Jones

Emma began her career in Lloyds Banking Group, first in the unsecured & secured loans department at Halifax and later as a mortgage advisor at Lloyds. During 9 years in these roles and a further 2 years at Yorkshire Building Society, Emma was able to observe the impact of the recession, and how the banks let their customers down by denying loans and mortgages. Wanting to be a driving force for change, she stepped into a market advice role where she has been able to help clients when others couldn’t. Identifying a gap in the mortgage space, Emma went on to establish When the Bank Says No. As a keen property investor, she has been the focus of features in publications including The Sunday Times and This is Money. Emma’s greatest joy is overcoming the low expectations of their customers, many of whom have all but given up on getting a mortgage due. One thing Emma has learned through her own personal struggles is every client must be treated like a human and understood better by advisors and lenders in the industry. “We all have to navigate life events which can ultimately impact your financial status. It shouldn’t mean dreams of homeownership or business growth should have the breaks applied”. Emma and her team’s passion for helping people overcome the challenges they may face when applying for a mortgage have fuelled the success of When the Bank Says No.