Renting out a property comes with a number of responsibilities, one of which is ensuring your property meets the required energy efficiency standards. One crucial aspect landlords must consider is the Energy Performance Certificate (EPC) rating. In this post we will explore what EPC rating you need to rent out a property, why it matters and how you can improve your property’s rating.

If you are a landlord based in Warrington, Widnes or St. Helens and require a new EPC or simply want to get some advice please contact us today.

What is an EPC rating?

An Energy Performance Certificate (EPC) provides a detailed report on a property’s energy efficiency and environmental impact. The rating is presented on a scale from A to G; A being the most energy-efficient and G being the least. The certificate also includes recommendations for improving the property's energy efficiency, helping you understand how to potentially lower energy costs and reduce carbon emissions.

Why is an EPC rating important?

Legal requirement. It is a legal requirement to have a valid EPC when constructing, selling, or renting out a property. Failing to provide a valid EPC can result in significant fines.
Energy Efficiency. A higher EPC rating indicates better energy efficiency which can make a property more attractive to potential tenants due to lower energy bills and a reduced environmental impact.
Marketability. Properties with higher EPC ratings can often demand higher rental prices. Energy efficiency is increasingly important to tenants who are more environmentally conscious and keen on reducing living costs.

Minimum EPC rating required to rent a property

As of April 2020, landlords in the UK must ensure their rental properties meet a minimum EPC rating of E. This applies to both new leases and renewals. Properties that do not meet this standard cannot be legally rented out unless they have a valid exemption.

How to Improve your EPC rating

Insulation. Improving wall, roof, and floor insulation can significantly enhance a property's energy efficiency. Well-insulated properties retain heat better, thus reducing the need for excessive heating.
Efficient heating systems. Upgrading to a more efficient heating system, such as a condensing boiler or renewable energy solutions like heat pumps, can improve your EPC rating.
Double glazing. Installing double-glazed windows helps reduce heat loss and can also improve soundproofing.
Energy-efficient lighting. Switching to LED lighting reduces energy consumption and can positively impact your EPC rating.
Smart controls. Implementing smart thermostats and heating controls can optimise energy usage, making your property more efficient.

Understanding exemptions

In some cases, it might not be feasible to upgrade a property to meet the minimum EPC rating. There are specific exemptions available, such as:

Cost exemption. If all recommended improvements have been made but the property still doesn’t reach an E rating, you might qualify for an exemption.
Consent exemption. If you can’t obtain necessary third-party consents (e.g. planning permission or consent from freeholders) to carry out improvements.
Devaluation exemption. If the improvements would reduce the property’s market value by more than 5%.

Exemptions must be registered on the PRS Exemptions Register and are typically valid for five years.

Conclusion

Understanding and adhering to EPC rating requirements is crucial for landlords looking to rent out their properties. Not only is it a legal obligation but it also has significant implications for energy efficiency, tenant attraction, and marketability. By taking steps to improve your property’s EPC rating, you can enhance its appeal, contribute to environmental sustainability, and potentially increase rental income.