What is an EPC?
It is a document that includes information on a property’s energy efficiency and what the environmental impact is. The EPC assigns each property a grade ranging from A to G. A grade of A indicates a high energy efficiency level, while a grade of G classifies the property as poor in terms of its energy efficiency. A higher rating means that the property will be more attractive to prospective buyers, or to tenants if you are letting the property.
To get an EPC, an accredited energy assessor will need to inspect your property or you can see if the estate agent will make arrangements for you. After the inspection has been conducted, a certificate will be issued – the EPC. This certificate is valid for a period of ten years. Please check out Fourlabs for all your property marketing needs.
To get an EPC, an accredited energy assessor will need to inspect your property or you can see if the estate agent will make arrangements for you. After the inspection has been conducted, a certificate will be issued – the EPC. This certificate is valid for a period of ten years.
When I am selling a property why do I need to have an EPC?
Whenever you sell property an EPC is required by law. The vendor is responsible to ensure that the property has a valid EPC whenever it is advertised for sale. Also, you need to ensure that if your EPC is expired that you ask for a new one prior to putting the property up for sale. If you are working with an estate agent to sell your property, your agent can help you renew or obtain an EPC.
For prospective buyers, an EPC is very important since it provides information on the general energy efficiency of the property, the amount of energy that it is using, and what the energy costs are for operating the property. Also, the EPC provides recommendations and guidance on how the energy efficiency of the property can be improved to help reduce energy costs even further.
The prospective buyer’s solicitor will ask to have an EPC done. If the EPC has not been submitted by the deadline, then the vendor might be faced with having to pay a penalty fine.
How landlords are affected by EPC regulation changes
A landlord must always provide an EPC before the property can be let. However, the current regulations on EPCs are scheduled to change this year which will affect landlords along with their rental properties. In April New Minimum Energy Efficiency Standards (MEES) will be enacted. Starting on 1st April 2018, every property that is rent out within the private rental sector will be required to have an “E” or higher EPC rating. After this date, properties with F or G ratings cannot be legally let out. These changes will only apply to tenancy renewals and new lets in the first instance. However, from 1st April 2020 onward they will apply to all tenancies, both existing and new ones.
Landlords can have improvements made to their properties (if they fall under the F or G category) at no cost by arranging for third-party finance. It is in the best interests of a landlord for their properties to have maximum energy efficiency. Tenants will find this very appealing. The prospect of having a better-insulated and warmer property will always be something that tenants find attractive. If there are any void periods experienced, the landlord will need to cover the energy costs. Both the tenants and landlord will benefit from the cost savings.
It is always in the best interests of homeowners and landlords to continue to make improvements to their properties’ energy efficiency in order to obtain a higher rating when needed. This is especially true for those who are planning on selling their properties in the future. While E is currently the minimum energy rating, in upcoming years this is very likely to change, as the government continues to aim to reduce carbon emissions through energy efficiency improvements of properties.