Energy Performance Certificates
Since 1 October 2008, landlords have been required to make an Energy Performance Certificate (EPC) available to interested parties when a property is being advertised for sale or let. The purpose of the EPC is to show the energy performance of the dwelling.
The certificates show the energy efficiency rating, compare the home's energy performance-related features with the average ratings, and highlight specific ways to improve the performance.
An energy performance certificate, which includes a recommendation report, lasts for ten years unless a new EPC has been produced. Only the latest certificate is valid.
An EPC must be commissioned before advertising, and you should use all reasonable efforts to ensure that an energy performance certificate is obtained within seven days of marketing. If it is simply impossible to get the EPC within seven days, an additional 21 days is allowed, but this extra time is only permitted if all reasonable efforts were made to obtain the EPC in the first seven days.
As shown on the energy performance certificate, the energy performance indicator must be displayed in any advertisement on the internet, in newspapers, magazines, written particulars, or any other advertisement. The ad should include the numerical score or letter representing the energy usage shown on the EPC.
The EPC must be available to prospective occupiers, free of charge, before they are given written details, arrange a viewing, or agree to a letting. The EPC does not have to be given at this stage but must be available if they ask. A copy of the EPC is acceptable.
The actual occupier who takes the property must be given a full copy of the EPC, including the assessor's recommendation report.
Breaking the EPC rules can result in a £200 fixed penalty notice from Trading Standards.
The EPC rating must be E or better unless an exemption is registered — see the next section, "Energy Efficiency Improvements," for more information. Interestingly, if you rent individual rooms and there is no requirement to supply an EPC, if there is a valid EPC (perhaps from a purchase), the same minimum rating applies to the room rental.
EPCs are completed by registered Domestic Energy Assessors (DEAs). You can find an existing EPC here: https://www.epcregister.com/.
Further information is available on the GOV.UK website: https://www.gov.uk/buy-sell-your-home/energy-performance-certificates.
Although the EPC may suggest several improvements you could make, provided the rating is E or above, there is no legal obligation to undertake any of these works. However, it is advisable to discuss with prospective occupiers which (if any) of the energy-saving recommendations might be carried out or have already been completed. Being transparent and managing the occupier’s expectations may help you avoid potential complaints.
Exemptions to having an EPC
There is often confusion over exemptions from having to obtain an EPC. These are frequently mixed up with exemptions from complying with the minimum "E" rating.
An EPC is required on a self-contained building. A building means "a roofed construction having walls, for which energy is used to condition the indoor climate". The requirement for an EPC is only triggered when the property is to be marketed for sale or rent. Marketing for rent does not include a renewal where the landlord, tenant, and property remain the same.
Listed Buildings
There is a common misunderstanding regarding listed buildings and whether they are exempt from the legal requirement to obtain an EPC. Listed properties, and buildings within a conservation area, will not necessarily be exempt from the requirement to have an EPC when they are sold or let, and it will be up to the owner of a listed building to understand whether or not their particular property is required to have one. ...
As a general rule, a listed building will require an EPC when it is marketed for rent. However, if it does not meet the minimum "E" rating, an exemption may apply if carrying out works to improve its efficiency is not possible due to the restrictions imposed by its listed status.
HMOs and shared rooms
An EPC is required if a whole house or flat is let to sharers on only one contract.
When letting individual rooms, the guidance relating to when an EPC is required states:
An EPC is not required for an individual room when rented out, as it is not a building or a building unit designed or altered for separate use. The whole building will require an EPC if sold or rented out.
However, a landlord cannot serve a no-reason possession notice if the contract-holder has not been given an EPC.
It is advisable to have an EPC done for the whole building and provide each room tenant with a copy of the EPC for the entire house when a new contract is granted. This avoids disputes over possession in court.
Furthermore, the accelerated possession claim form asks whether the contract-holder has been given an EPC—it does not include an option for "an EPC is not required". An explanation would need to be added if no EPC is provided.
Temporary buildings and demolition
The following are some of the main exemptions under the regulations:
- Temporary buildings with a planned time of use of two years or less.
- Residential buildings intended to be used for less than four months of the year, or where the owner or landlord could reasonably expect the energy consumption to be less than 25% of all-year-round use.
- Stand-alone buildings with a total useful floor area of less than 50m² (i.e., buildings entirely detached from any other building).
- A building is also exempt where the seller or landlord can demonstrate that:
- the building is suitable for demolition;
- the resulting site is suitable for redevelopment;
- all relevant planning permissions, listed building consents, and conservation area consents exist in relation to the demolition; and
- in relation to the redevelopment, either outline planning permission or full planning permission exists, and where relevant, listed building consents exist.
- Some holiday lettings may be exempt. Please see this guidance for more information.
Park Homes and Mobile Homes (Caravans)
The Government's official park-home guidance states:
"Park homes do not need an Energy Performance Certificate (EPC)."
The guidance does not explain the reason for this exemption.
However, in law, most park homes and mobile homes fall within the definition of a "caravan" in the Caravan Sites and Control of Development Act 1960, section 29:
"'caravan' means any structure designed or adapted for human habitation which is capable of being moved from one place to another (whether by being towed, or by being transported on a motor vehicle or trailer) and any motor vehicle so designed or adapted, but does not include-
(a) any railway rolling stock which is for the time being on rails forming part of a railway system, or
(b) any tent."
Because the Energy Performance of Buildings (England and Wales) Regulations 2012 apply only to "buildings" (roofed constructions with walls for which energy is used to condition the indoor climate), and a caravan is not considered a building for these purposes, the widely accepted view is that caravans - including most park homes - are outside the EPC regime.
Important considerations:
- This legal interpretation (that caravans are exempt because they are not "buildings") is an inference based on the definition in the 1960 Act and the scope of the EPC regulations. It is not explicitly stated in the GOV.UK guidance.
- Classification can be fact-specific. In some situations, a mobile home may be treated as a "building" rather than a caravan (for example, if it is permanently sited, structurally altered, or integrated into the land). If there is any doubt, seek specific advice.
- An EPC may be obtained voluntarily, even if not legally required. Doing so can help avoid disputes over classification (particularly for section 173 possession) and improve transparency for tenants.
Section 173 Notices
A section 173 notice is the six months' "no-fault" notice that a landlord can serve where there is an occupation contract. The notice is discussed in detail later.
The landlord may not serve a section 173 notice unless the contract holder has first been provided with an EPC, where an EPC is legally required.