Over recent years, legislation has been put in place to raise the environmental standard for properties that are privately rented. Part of these new legal requirements for landlords is to have an energy performance certificate (EPC).
What does an EPC rating mean?
The purpose of an EPC is to show how energy efficient your property is. There is a rating scale from A (most efficient) to G (least efficient).
Before marketing properties for rent, landlords are legally required to have an EPC. Not only must they have an EPC, but their property must also meet the minimum standards for energy efficiency. Landlords may face fines from between £500 and £5,000 if their property fails to meet the minimum grade.
How is an EPC rating is calculated?
Your property will be given an energy-efficiency grade between A and G.
Using the government’s Standard Assessment Procedure (SAP) your home will be given a numerical score from 1-100 SAP points. These scores are divided into bands as follows:
- EPC rating A = 92-100 SAP points (most efficient)
- EPC rating B = 81-91 SAP points
- EPC rating C = 69-80 SAP points
- EPC rating D = 55-68 SAP points
- EPC rating E = 39-54 SAP points
- EPC rating F = 21-38 SAP points
- EPC rating G = 1-20 SAP points (least efficient)
New-build homes tend to have good EPC ratings from A-C, while older homes often have lower ratings of around D or E. The average EPC rating for a home in the UK is D.
How to improve your home’s energy efficiency rating
It is beneficial for landlords to have a property with a more efficient rating. This can allow for lower energy bills and a lesser environmental footprint.
There are a whole host of recommendations on how to improve your properties EPC rating. This is important as your current rating is displayed on your EPC as well as the rating that could be achieved should you implement the recommendations. Here are a few recommendations to make your property more energy efficient:
- Double glazing. Upgrading your windows and doors both reduces noise and improves your home’s energy performance.
- Loft insulation. Installing loft insulation that is at least 270mm thick is inexpensive and will have a positive impact on your bills.
- Wall insulation. Doing this can both improve your EPC rating and help you qualify for help with the costs.
- Replace your boiler. This can help to significantly reduce your energy bills.
Are there any exceptions?
If your properties rating is an F or G, you either need to improve your properties rating to an E by following the recommendations of your EPC, or you need to register for an exemption. The only way one can apply for an exemption is if you have made all the recommended improvements capped at £3,500 or your EPC says there are no improvements that can be made. Exemptions last five years, and then the landlord must try once more to improve their properties rating to an E. if this is still not a possibility, they will have to register for another exemption.
Alternatively, one can also apply for an exemption if the work will devalue the property by 5 per cent, the upgrades would ‘unacceptably alter’ the properties appearance or if the work recommended has been carried about but the properties rating did not improve. Tenants can, with the landlord’s permission, also carry out energy-efficient improvements to the rental property. However, the costs for these improvements must be covered by the tenants themselves.
There are also some cases where a landlord may be qualified to apply for financial help to undergo the recommended improvements. The Green Homes Grant is a great example of this, as landlords can apply for vouchers that will cover two-thirds of specific home improvement costs. These vouchers can be up to the value of £5,000.