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Understanding EPCs: A Guide for Landlords

October 31, 2024

Energy Performance Certificates (EPCs) are a necessity for landlords in the UK, especially with tightening regulations around energy efficiency. As a landlord, it’s important to make sure your properties meet the necessary standards. At Jacobs Steel, we can help you to comply with legal requirements, which will also help to improve tenant satisfaction.

Here’s what you need to know about EPCs as a landlord:

What is an EPC?

An Energy Performance Certificate (EPC) gives a rating of a property’s energy efficiency, from A (most efficient) to G (least efficient). It also offers recommendations on how to improve the property’s energy efficiency and details potential savings.

The assessment covers areas such as:

  • • Heating systems
  • • Insulation
  • • Lighting
  • • Windows
  • • Renewable energy options

The certificate is valid for 10 years, but you’ll need to update it if major changes are made to the property, such as new insulation or a boiler replacement.

Why do landlords need an EPC?

As a landlord, you are legally required to provide an EPC whenever you rent out a property. This applies whether you’re renting a new property or renewing a tenancy agreement.

Here’s why EPCs are important:

  1. 1. Legal Compliance: Since 2018, UK law states that properties rented to tenants must have an EPC rating of at least ‘E’. From 2030, this will rise to ‘C’ and all rental properties will need to meet this threshold.
  2. 2. Fines and Penalties: If you fail to provide an EPC or rent out a property with a rating below ‘E’, you could face fines up to £5,000.
  3. 3. Sustainability and Cost: With rising energy costs, tenants are more interested in renting energy-efficient homes. A better EPC rating makes your property more attractive, as it could lead to lower energy bills for your tenants.
  4. 4. Property Value: Energy efficiency improvements, such as upgrading insulation or installing double glazing, not only improve your EPC rating but can also enhance the overall value of your property.

How to improve your EPC rating

As a landlord, there are a few key steps you can take to boost your property’s EPC rating:

  • Insulation: Check that the loft and walls are properly insulated to prevent heat loss.
  • Efficient Boilers: Upgrading to an energy-efficient boiler or heating system can dramatically improve your EPC rating.
  • Windows: Double-glazing can enhance energy efficiency by reducing heat loss and preventing drafts.
  • Lighting: Switching to energy-efficient LED bulbs is a small change that can make a big difference.
  • Renewable Energy: Solar panels or ground-source heat pumps are more significant investments, but they can drastically improve your property’s EPC rating and long-term sustainability.

What’s next for landlords?

As we approach the 2030 deadline for a minimum ‘C’ EPC rating for new tenancies, now is the time for landlords to start thinking about energy improvements. Waiting too long could result in rushed, expensive renovations or difficulty finding tenants.

Some key steps to consider:

  • Get an EPC assessment: If your property hasn’t been assessed recently, now is the time. Understanding your current rating will help you identify the best areas to invest in.

  • Take advantage of government schemes: Grants and funding may be available to help landlords make energy-efficient improvements, such as the Great British Insulation Scheme (although schemes can change, so stay up-to-date on the latest opportunities).

  • Plan for the future: Even if your property currently meets the ‘E’ requirement, thinking ahead to the upcoming ‘C’ rating target will save time and money in the long run.

EPCs are more than just a legal requirement – they’re a way to future-proof your rental properties. By improving your property’s energy efficiency, you’ll be staying ahead of changing regulations, appealing to eco-conscious tenants, and potentially saving money in the long term.

Now is the time to plan ahead, and at Jacobs Steel, we’re here to support landlords and help navigate the government regulations. We have in-depth knowledge of property laws, regulations, and market trends, helping landlords stay compliant. Get in touch with us today and let us help you navigate this evolving landscape.

Jacobs Steel are estate and letting agents with offices in Worthing, Findon, Lancing, Shoreham-by-Sea and Hove. Our commercial sales & lettings team will guide you through the entire process, communicating with you every step of the way.

Disclaimer: While we aim to provide accurate information, this article is intended as a general guide and doesn’t constitute professional advice. Always consult with a qualified professional for specific guidance.


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