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Energy Performance Certificates

From 1st October 2008, it is a legal requirement of every landlord to provide their prospective tenants with an Energy Performance Certificate (EPC). This legislation only applies to tenancies commencing on or after this date. Properties which are already occupied by a tenant on that date are temporarily exempt from this requirement until the tenancy changes (if applicable).

EPCs are similar in appearance to the certificates that appear on fridges and freezers (see example below).

EPC Graph

From 1st October 2008, it is illegal to advertise a property to rent unless it has a valid EPC. Unless agreed otherwise, we will arrange this on your behalf before we commence the marketing of your property. A £200 fine could be imposed for failure to comply.

How long does an EPC last?

The certificates will last for 10 years before they are required to be renewed. It can be used as many times as necessary during this period and a new EPC is not required even if work is done to the property during this time, although a new EPC can be commissioned if the landlord prefers to do so.

In addition, if a landlord purchases a property to let out that has an EPC as part of the Home Information Pack, this EPC can be used for letting purposes. The same applies when a property is bought from new that has a valid EPC.

Who provides an EPC?

An EPC must be prepared by a registered assessor (a domestic energy assessor) who is fully qualified and Government Certified.

What is the cost of an EPC?

Costs for producing an EPC vary, depending on the size of the property. This will be anywhere in the region of £60-£100. We can provide you with an accurate quote before instructing an assessor to carry out the report. Home Truths currently offer EPC'S FOR £60 + VAT

What does an EPC show?

The EPC's will provide each individual property with two energy ratings:

The SAP Rating: This rating provides an indication of a property's energy efficiency (i.e. the running costs for the property). The higher the SAP (Standard Assessment Procedure) rating, the lower the fuel costs to heat the home.
The Environmental Rating: This is an assessment of the property's impact on the environment (i.e. the average carbon dioxide emissions for a year). The lower the rating, the more impact it has on the environment.

Each of these is rated A to G, with A being the most energy efficient. The A to G Scale is similar to that which is attached to refrigerators. The average rating is likely to be D or E.

The assessor will also provide details of how a property's energy efficiency could be improved (for example, by the installation of UPVC windows and cavity wall insulation etc.). It is important to note that there is no legal requirement for the landlord to act on any of the recommendations contained in the report.

For what types of property is an EPC required?

The rule is that an EPC is required for individual dwellings which, for these purposes, mean a self-contained unit with its own kitchen, toilet and bathroom behind its own front door. An EPC is only required on a rental of a building or part of a building if it is designed or has been altered to be used separately.

An EPC is not required for non self-contained accommodation such as bedsits. Renting out individual rooms in a building with shared facilities (e.g. the kitchen, toilet or bathroom) does not require an EPC. NB: This is the interpretation currently provided by Government lawyers, but such interpretation may change over time.

An EPC is required as follows:

Individual house/dwelling (i.e. a self-contained property with its own kitchen/bathroom facilities)	One EPC for the dwelling
Self-contained flats (i.e. each behind its own front door with its own kitchen/bathroom facilities)	One EPC per flat
Bedsits (where there is a shared kitchen and/or bathroom)	No EPC is required
Shared flats/houses (e.g. a letting of a whole flat or house to students/young professionals etc.)	One EPC for the whole house
Mixed self contained and non self contained accommodation	One EPC for each self-contained flat/unit but no EPC for the remainder of the property
A room in a hall of residence or hostel	No EPC is required
Individual room in a flat or house (e.g. where a tenant rents a room so he/she has exclusive use of his/her bedroom and shared use of the kitchen and bathroom)	No EPC is required

When must an EPC be provided?

A copy of the EPC must be made available to the prospective tenants at the earliest opportunity. This means that they must be given the opportunity to look at the certificate and read it through. Therefore at Home Truths we will arrange for an EPC to be completed when we start the marketing of your property.

As a minimum, a copy of an EPC must be made available in this way to a prospective tenant:

When somebody requests information about the property
When someone makes arrangements to view the property
When someone makes an offer to rent the property

Where property details are produced, these must include a copy of the EPC.

How is an EPC handed over to a tenant?

An EPC can be sent electronically provided the tenant/prospective tenant agrees. A record should be kept of handing over an EPC, whether this is done manually or electronically. Only a copy need be provided, not the original.

Who is responsible for an EPC?

The legal responsibility rests with the landlord, but as a letting/managing agent, Home Truths will fulfil this responsibility and arrange for the EPC to be completed. However, responsibility for compliance still remains with the landlord.

How are EPCs enforced?

The Local Authority's Trading Standards department is the relevant enforcement authority. There are fixed penalties for failing to provide an EPC or failing to make one available when required. The fixed penalty for dwellings is £200 per dwelling. There is a six month time limit for any enforcement action to be taken.

What happens if a property is sub-let?

If a property is sub-let then responsibility will lie with the landlord under the sub-tenancy (i.e. the tenant) to provide an EPC. The head landlord is not in breach of the regulations if his tenant creates a sub-tenancy but fails to provide an EPC. However, in this situation, the tenant is entitled to use any EPC which he receives from his landlord to pass onto the sub-tenant.

What if your property has a tenancy already in place?

An EPC is not required for properties with a tenancy agreement currently in place. When a property becomes available for re-let (i.e. when the tenancy ends) or when a new tenancy agreement is drawn up (i.e. on renewal), then an EPC will be required.

So what must a landlord do before letting out a property?

Commission and obtain an EPC from a registered assessor. Home Truths will carry this out on your behalf. If you already have an EPC for the property - e.g. if you have recently bought a property with a valid EPC - please provide us with the EPC to use.
Make a copy of the EPC available to any prospective tenant free of charge. Home Truths will again provide this copy to all prospective tenants as part of the marketing / property details that we produce when marketing our properties available to let.
Give the tenant a copy of the EPC before he/she signs the tenancy agreement including the recommendation report (again free of charge). This applies even if they have already seen it. Again Home Truths will make sure that the tenant has this copy before signing the tenancy agreement.

The Department for Communities and Local Government has released guidelines for landlords of rented property in relation to EPCs. This is a 32-page document that can be accessed via the link below, or we can email this to you on request.

Click here to view the Landlord Guide

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