How an EPC affects your rental property


As a property owner in the UK, there are many permits and certificates that come along with the investment of a home. One certificate that is crucial to have is the ‘Energy Performance Certificate’ (EPC).

So what exactly is an EPC?

Energy Performance Certificates were first introduced in 2008 to set a standard for homes in the UK. It assesses a property’s energy efficiency, which is presented on a colour scale of A (most efficient) to G (least efficient). After an EPC has been awarded, recommendations are given for ways of improving the energy efficiency of your home.

The EPC is valid for 10 years and can be used by owners and tenants alike to estimate how much the heat and power for a specific property may cost. The outcome of the EPC may influence your rental property, and therefore affect the return of your investment.

Below we have listed a few ways an EPC affects your rental property:  

1. New minimum requirements

In 2021 the minimum energy efficiency standards (MEES) for England and Wales, stated that as of 2025 all rental properties must have a minimum EPC rating of ‘C’. This new benchmark will be implicated in attempts to make homes more energy efficient as well as reduce carbon emissions.

As a property owner and landlord, knowing as much as you can about the new legislation will allow you to make the necessary changes to your property so that it meets the minimum requirements.

2. Rise in rent

It has been estimated that owners of buy-to-let properties will spend around £5,900 on their homes to get them up to scratch and meet the new ‘C’ requirement. Because of this landlords have said they are expecting an increase in their asking rental prices, to compensate for the money they have put into the property.

By having a ‘greener’ property one can attract new possible tenants. Many tenants have said they would be prepared to stay in their home for longer if changes were made to it and a significant number would be prepared to pay more.

3. Saving on energy prices

With the ever-increasing price of energy recently, the improvement of one’s EPC will allow you to save money on your utility bills. As mentioned earlier, the certificate will indicate where improvements to your energy efficiency can be made, and thus subsequently tell you where you can save money if the improvements are made.

4. Ideal target market

A modernised and ‘greener’ home could help you attract a wider market. Having a nicely decorated home that is eco-friendly will appeal to a growing number of people, especially young working professionals.

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