The energy efficiency of rental properties is a growing concern for both landlords and tenants alike. The Energy Performance Certificate (EPC) rating is a crucial factor in evaluating a property's energy efficiency. Inspectors assess both the interior and exterior of a property to determine its energy efficiency and suggest ways to improve it.

The EPC rating system ranges from A to G, with A being the highest rating and G the lowest. As of now, a property must achieve a minimum EPC rating of E or above to be legally let. However, as part of the government's new Minimum Energy Efficiency Standards introduced in April 2020, all existing tenancies, not just new ones or renewals, must conform to these standards.

Energy efficiency improvements

In December 2020, the UK government announced revised EPC regulations for England and Wales. Under these new regulations, all rental properties must have an EPC rating of C or higher by 2028, this regulation has been updated in March 2023.

Different areas of the property will be assessed and can also be improved, such as:

• Windows - double glazing
• Solar panels
• Lighting - energy efficient light bulbs
• Roof, walls and insulation - can be renewed/replaced
• Boilers and heating - upgraded boilers and heating systems

As a landlord, you are required to give a 24-hour written notice to the tenants before appointing an assessor to inspect the property. Tenants are also entitled to a copy of their home's EPC rating and must receive it when they move in. It's essential to note that the cost of upgrading a property's rating from D to C or higher may be substantial, estimated to be around £10,000.

Possible property exemptions

There are some circumstances when your property may be exempt from minimum EPC requirements.

• A protected or listed building that may be compromised by changes
• Buildings that are due to be destroyed
• Some industrial sites

Thus, it may be worth reviewing older EPCs to ascertain whether they meet the latest regulatory standards. As a landlord, it's your responsibility to ensure your property meets the required EPC standards; otherwise, you may face financial penalties. Similarly, as a tenant, you ought to be aware of your property's EPC rating and demand an updated rating if necessary.

In conclusion, the new EPC regulations represent a significant step towards regulating energy efficiency in the UK's rental market. It's essential to remain up-to-date with the latest regulations as a landlord or tenant and ensure that your property meets the specified standards. Doing so will help reduce energy costs and ultimately benefit both parties.

For more information on energy performance certificates visit the Government website here

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