Menu
Add a property
Add a property

How to avoid EPC penalties

by Sorcha DugmorePosted on

What is an EPC?
An EPC (Energy Performance Certificate) is necessary for providing insight into the energy efficiency and emissions from a property.

The gov.uk website sets out clear rules for ordering EPC’s: 

  • When selling a property, you must order an EPC for potential buyers and tenants before you market your property to sell or rent.
  • In Scotland, you must display the EPC somewhere in the property, for example in the meter cupboard or next to the boiler.

An EPC will provide an energy efficiency rating for the reviewed property from A (most efficient) to G (least efficient), this rating will then be valid for 10 years. 

Changes to EPC policies

In April 2020 the government introduced the current rules for property EPC’s which apply to all existing tenancies. These changes prohibited letting properties which scored an F or G efficiency rating, landlords who failed to comply with these regulations were faced with fines up to £5000.

After a consultation in December 2020, the Government announced new standards for England and Wales which are set to come into law by 2025.

The change signifies a large-scale shift towards the prioritisation of environmental considerations in the UK property market. From the activation date of the new law, all rental properties will be required to have an EPC rating of between A and C. The regulations will apply to all new tenancies in 2025 and all existing tenancies by 2028.

Not complying with the new law after 2025 will result in a significantly higher penalty of £30,000. 

What can landlords do to avoid EPC charges? 

Landlords should now review the EPC ratings of the properties within their portfolios. For landlords whose properties have a rating of lower than C, it’s advised to start taking action now to prepare for the upcoming law changes in 2025.

The energy provider EDF outlines some of the most effective ways to improve the EPC rating of a property:

  • Adding/ improving loft insulation 
  • Adding/ improving wall insulation 
  • Replacing boilers 
  • Installing solar panels
  • Double glazing windows

The changes will inevitably be costly to landlords whose homes do not have existing energy efficiency measures in place. Landlords are advised to start implementing measures to improve property EPC ratings early in order to spread the cost over a longer period of time, making the home improvements more manageable.