An Energy Performance Certificate (EPC) is required whenever a property is built, sold or rented. An EPC report contains information about a property’s energy use and typical energy costs together with recommendations about how to reduce energy use and save money.

An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and it is valid for 10 years. EPCs must be produced by an accredited domestic energy assessor.

Commissioning an EPC for rented properties

If the property is self contained, at each change of tenant, the EPC must be made available to prospective tenants. As an EPC is valid for 10 years it is not necessary to obtain a new one each time the tenant changes, although it is beneficial for landlords to commission new reports if major energy efficiency works have been carried out on the property that would improve the energy rating.

Responsibility for commissioning an EPC lies with the landlord, although a letting agent may arrange this on their behalf. There must be no charge to the prospective tenant for any of the costs relating to the EPC.

Once created, EPCs are lodged on the electronic EPC register which is open to the public although landlords can request that their EPC is not made publicly available on the register.

An EPC must be commissioned before a property is put on the market and the landlord must use all reasonable efforts to obtain the report within 7 days of the start of marketing. Marketing starts when it is first made public that the property is, or may become available for rent (by whatever means – it doesn’t have to be formal advertising)

Commissioning an EPC means that the landlord has requested that an accredited domestic energy assessor produce the EPC, has provided all the necessary information and has either paid or agreed to pay for the report.

If, despite commissioning the EPC, it is still not available after seven days, then marketing can continue but the EPC must be obtained within a further 21 days. If the EPC has not been obtained by 28 days from the start of marketing, the landlord will be guilty of an offence, the penalty being £200 enforced by Trading Standards.

There are some circumstances where an EPC is not required. For more information, visit: https://www.gov.uk/energy-performance-certificate-commercial-property

Advertising rented properties

As from 9th January 2013 there is no longer a requirement to attach the first page of an EPC to any written particulars about a property designed for anyone who may be interested in renting it. Instead, the EPC rating must be stated in the advertisement appearing in commercial media, e.g. newspapers, magazines, internet, any written material to advertise the property. The full A-G graph should be used where there is adequate space.

A full copy of the EPC must be made available to a serious prospective tenant, free of charge at the earliest opportunity. The very latest it can be provided, regardless of whether the prospective tenant requests it, is either:

• when the landlord gives any written information about the property to a prospective tenant requesting it; or

• when the prospective tenant views the building in person

Landlords cannot delay providing the EPC until just before signing the tenancy agreement.

The EPC can be provided in hard copy or can be sent electronically if the prospective tenant agrees although the landlord should keep an audit trail recording such an agreement.

Implications of ignoring EPCs

The anticipated energy costs for a property should play an important part in a prospective tenant’s choice on whether to rent it or not. The Lincolnshire district councils in partnership with Trading Standards intend to increase promotion and understanding of EPCs.

It is in the landlord’s interest to ensure tenants understand the EPC and can afford to heat the home. In an increasing number of cases under heating a property because of an inability to afford energy costs is casusing condensation, damp and mould problems.  In addition, tennants who accrue a debt with their fuel supplier may be put on a prepayment meter.  this might be undesirable for future tenants and it woudl cost the landlord to revert it back to a credit meter.

The future

From April 2016, private landlords will be unable to refuse a tenants’ reasonable request for consent to energy efficiency improvements, where a finance package, such as the Green Deal and/or the Energy Company Obligation (ECO), is available.

Under the Energy Act 2011, from April 2018, it will be unlawful to rent a residential property that does not reach a minimum energy efficiency standard. It is proposed that the minimum standard will be an EPC band E, meaning any property which has an EPC energy rating of F or G could not be rented out.

First published: June 2014

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