Do You Need an EPC Before You Can Let a Property?
Short answer: yes, in almost all cases. Before you can market a rental property to let it, you need a valid Energy Performance Certificate (EPC) in place, and it has to meet the minimum energy efficiency standard or you cannot lawfully let the property at all.
Why it is a legal requirement, not just good practice
Under the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2012, an EPC must be commissioned before a property is marketed for let, and a valid one made available to prospective tenants free of charge. On top of that, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, known as MEES, currently require most rented properties to have a minimum EPC rating of E. Letting a property below that rating without a valid exemption in place is a breach that can lead to a financial penalty from the local authority.
What counts as a valid EPC
An EPC is valid for 10 years from the date it is issued, so if yours was done some years ago it is worth checking the expiry date before you assume you are covered. It has to be produced by an accredited domestic energy assessor, and it needs to actually match the property being let, not a certificate carried over from a different unit in the same block or an earlier configuration of the building.
What happens if you let without one
Beyond the direct financial penalty for breaching MEES, there is a knock-on consequence that catches a lot of landlords out. Under the Deregulation Act 2015, if you have not provided the tenant with a valid EPC, along with the other prescribed information such as the gas safety certificate and the government's How to Rent guide, at the start of the tenancy, you may be unable to serve a valid Section 21 notice to regain possession later. So the EPC is not just a certificate to keep on file, it directly affects whether you can end the tenancy through the standard route if you need to.
When an EPC is not needed
Not every letting arrangement needs one. EPCs generally are not required for lodgers sharing a landlord's own home, listed buildings where the energy efficiency requirements would unacceptably alter the character of the building, or very short lets under four months where there is no intention to renew. Outside those specific situations, assume one is needed.
Getting below an E rating fixed
If a property is rated F or G, it cannot legally be let unless a valid exemption has been registered on the PRS Exemptions Register, such as a high cost exemption where all relevant improvements costing up to the current cap have already been made. Exemptions last five years and have to be re-registered, they are not a permanent way round the requirement.
How it fits with your other landlord duties
The EPC is only one piece of what a landlord has to have in place before letting. the gas and electrical safety checks landlords cannot skip and what an EICR report actually tells you cover the other certificates that are usually due around the same point in the letting cycle, and it makes sense to get all of them lined up together rather than chasing each one separately as deadlines come round.
If you are pulling together everything a rental property needs before it is let, a complete landlord compliance document pack covers the EPC alongside the other certificates and paperwork in one go, rather than sorting each one out separately.
Comments
Post a Comment
Got a question about your own situation? Ask below and I will get back to you. Comments are checked before they go live so there may be a short delay.