An Energy Performance Certificate (EPC) was introduced by the Government in 2007 as a method of assessing the energy efficiency of residential and commercial properties in United Kingdom.
The EPC assessment is conducted by an approved Energy Assessor by conducting a non-intrusive visual inspection of the property, in particular the roofs, windows, lighting, fireplaces, boiler and insulation. The energy assessor will take down the necessary data whilst on site and then use a specialist software to produce calculations to be used in the EPC certificate. The property is allocated with an EPC value, which ranges from A (most efficient) to G (least efficient) The EPC certificate is valid for a period of 10 years or at the time when the property is being sold or let out.
What are the current legal standards in the UK?
From 01 April 2018, the Minimum Energy Efficiency Standards (MEES) were introduced which require all sold or let residential properties in England and Wales to have a minimum EPC rating of ‘E’ or above.
As of 01 April 2023, all existing and new commercial tenancies will require an EPC rating of E or higher. If your property does not comply and you would like a Building Survey or Specification of works prepared in this regard of for us to Project Manage the works please do not hesitate to contact us.
What are the proposed changes?
In December 2020, the Government consultation has proposed that all rental properties will need to meet a minimum EPC rating of “C” or above by 2028 unless the property is exempt. This new requirement will be introduced in phases, which will affect new tenancies from 01 April 2025 and then all remaining tenancies by 01 April 2028. Full details can be found in Improving the Energy Performance of Privately Rented Homes in England and Wales.
From 01 April 2027, the minimum EPC rating is set to increase to band C or higher and subsequently, an EPC rating of B from 01 April 2030 unless the property is exempt.
Is there any help available?
At current, the Government has capped the cost of energy performance improvement works for residential tenancies to £3,500. From 2025, this cap is set to be raised to a new spending limit of £10,000.
Implications of not having a valid EPC certificate
An EPC certificate is a legal requirement and the seller, landlord or the letting agent must show you an up-to-date EPC certificate if you’re planning to purchase or rent a property in the UK. There are a few limited exceptions where an EPC certificate is not required, such as if the building is a place of worship, temporary buildings that will be used for less than 2 years or listed buildings. The full list of exemptions can in Buying or selling your home article on gov.uk. The current penalty for not having a valid EPC certificate is £5,000, which is predicted to rise to a staggering £30,000 by 2025.
Whether K & A Chartered Surveyors are instructed to undertake a Building Survey or Homebuyers Report, we will inspect the property and provide advice in relation to the EPC certificate the property has. We also offer Project Management services where required by preparing either a Schedule of works or Specification of works depending on the complexity in order to improve the properties energy performance and EPC rating. If you require a Building Survey, Homebuyers Report, Schedule of works, Specification of works or Project Management services in this regard then please feel free to contact us.