A valid Energy Performance Certificate (EPC) is required before a property can be marketed which will be valid for ten years. It is the property owner’s responsibility to arrange the assessment.
EPCs show how energy efficient the property is, and what changes could be made to improve its energy efficiency. The certificates give each property a rating from A (the most efficient) to G (the least efficient). For any new or renewed assured shorthold tenancy, or for one becoming a statutory periodic tenancy from 1st April 2018, the energy efficiency rating for the property must be between A-E, unless an exemption applies and the property is listed on the PRS Exemption Register. From 1st April 2020, this will apply to all privately rented properties let on assured shorthold tenancies at that time. As well as an assessment of the property’s energy use, the certificates also look at the volume of CO2 emissions.
EPC assessments must be carried out by approved assessors, which are listed on the EPC register an assessment and usually costs between £60 and £120.
Saving money by improving the energy efficiency
The EPC may contain a number of recommendations of how the property’s energy efficiency can be improved. Alongside these recommendations is a typical cost of how much the improvement might cost, and the typical annual saving. These calculations are based on a number of assumptions, including typical energy costs, so should be seen as a guide rather than an exact recommendation.
Tax deductible energy saving improvements for landlords
When making energy saving improvements, up to £1,500 of VAT paid on certain products and their installation can be reclaimed when the landlord submits their tax returns, as part of the Government’s energy saving allowance scheme. For more information, visit Gov.uk.
If the property requires a licence from the local authority (mandatory, additional or selective) then the local authority may choose to implement a higher energy efficiency rating than the standard A-E. The individual local authority’s website will give you information on this and other licence conditions.