Why are EPCs important?
EPCs play a key role in both the property market and the UK's environmental strategy. For landlords and property managers, they are a legal requirement, and failing to comply can lead to fines. Tenants benefit from EPCs as they provide clear information on expected energy costs, allowing them to compare properties based on running expenses.
Beyond individual financial benefits, EPCs contribute to broader environmental goals. The UK has committed to reaching Net Zero carbon emissions by 2050, and improving the energy efficiency of buildings is a major part of this strategy. Homes and commercial buildings account for a significant share of the country’s carbon footprint, and higher EPC ratings indicate reduced energy consumption and lower emissions.
Additionally, properties with high EPC ratings often command higher rental and sale values. Tenants and buyers are increasingly looking for energy-efficient homes due to rising energy costs, making EPC improvements a worthwhile investment for landlords.
What properties do EPCs apply to?
EPC regulations apply to residential, commercial, and public buildings across the UK. Any property being sold or rented must have an EPC in place before it is marketed. Exemptions exist, such as listed buildings where energy efficiency improvements would significantly alter their character, or properties used for less than four months a year.
For landlords, EPCs are particularly important in rental properties. Currently under the Minimum Energy Efficiency Standards (MEES), rental properties in England and Wales must have a minimum EPC rating of E, unless exempt. These rules are designed to ensure that rental homes are safe, warm, and energy-efficient.
However, the Government has confirmed that it will soon legally require all non-exempt rented properties to achieve EPC band C by 2030. This is to get the residential property sector in line with the UK’s Net Zero goals.
Who is responsible for EPCs?
The responsibility for obtaining an EPC falls on different parties depending on the property transaction. Landlords must ensure their rental properties comply with EPC regulations before letting them out. Property managers may be required to organise the certification for them.
Failure to comply with EPC regulations can result in financial penalties. Local authorities and trading standards officers have the power to enforce EPC requirements, with fines varying depending on the property type and location.
Current EPC Regulations Across the UK
EPC regulations differ slightly across England, Wales, Scotland, and Northern Ireland.
In England and Wales, the current Domestic Minimum Energy Efficiency Standard (MEES) requires rental properties to have a minimum EPC rating of E. If a property falls below this threshold, landlords must undertake energy efficiency improvements before renting it out, unless they qualify for an exemption. Exemptions include cases where improvements are not cost-effective, would devalue the property by more than 5%, or are prevented by planning restrictions.
In Scotland, EPC rules are slightly stricter. The government has proposed that all rental properties must reach a minimum EPC rating of C by 2030. Additionally, EPCs must be displayed in commercial buildings over 250 square meters that are frequently visited by the public.
Northern Ireland has similar requirements to England and Wales but does not yet enforce MEES regulations. However, changes may be introduced in line with the UK’s broader energy efficiency policies.
How EPC regulations will change in the future
The UK government has signaled its intent to tighten EPC regulations as part of its Net Zero strategy. Proposed changes include raising the minimum EPC rating for rental properties from E to C by 2030, requiring all homes to meet higher efficiency standards over time. There are also discussions about reforming how EPCs are measured, potentially incorporating new performance metrics to provide a more accurate representation of a property’s energy use.
Further proposals include phasing out gas boilers in favor of heat pumps and renewable energy solutions, though these have not been confirmed by the Government. Recommendations have included banning the installation of new gas boilers in homes by 2035, alongside expanding funding schemes to support retrofitting efforts.
How to obtain an EPC
To get an EPC, property owners must hire an accredited Domestic Energy Assessor. The assessor will inspect key elements of the building, such as insulation, heating systems, and window glazing, before issuing the certificate. The EPC will then be added to the national register, where it remains accessible for ten years.
The cost of obtaining an EPC varies depending on the property's size and location but typically ranges from £60 to £120. Some government schemes may offer financial support for landlords undertaking energy efficiency improvements.
How to improve a property’s EPC rating
Improving a property’s EPC rating can be achieved through various upgrades. Adding insulation to walls, floors, and roofs is one of the most cost-effective ways to enhance efficiency. Replacing an old boiler with a modern, energy-efficient model or switching to renewable heating solutions such as heat pumps can also lead to significant improvements.
Upgrading windows to double or triple glazing, installing smart meters, and using energy-efficient lighting are additional strategies. Even small changes, such as draft-proofing doors and windows, can make a noticeable difference. For landlords, these improvements not only ensure regulatory compliance but also increase the attractiveness and rental value of their properties.
The impact of Net Zero on EPCs
EPCs play a crucial role in the UK's journey toward Net Zero emissions. The government has set ambitious targets to reduce the carbon footprint of buildings, and EPC regulations are expected to tighten in response. Stricter requirements will encourage property owners to invest in energy-efficient upgrades, leading to lower emissions and reduced energy consumption across the housing sector.
Conclusion
Energy Performance Certificates are a vital tool in the UK’s efforts to improve energy efficiency and reduce carbon emissions. Landlords and property managers must stay ahead of evolving regulations to ensure compliance and make informed investment decisions. With the government aiming for a Net Zero future, the importance of EPCs will continue to grow, making energy efficiency improvements a key consideration for all property owners.
