Legal News | 22.06.26
What is an Energy Performance Certificate (EPC)?
What is an Energy Performance Certificate (EPC)?
An EPC is a document issued following an energy assessment at a property. It shows the property’s current energy rating from A (the highest rating) to G (the lowest rating), along with the property’s potential energy rating should energy improvement works be undertaken.
An EPC will also include a basic breakdown of the energy efficiency of individual property features (such as the walls, the roof, the windows, etc). and a list of steps that can taken to improve the property’s energy efficiency.
When is an EPC required?
A valid EPC must be provided on a residential property sale, subject to certain exemptions mentioned below. A seller can be fined for failure to provide a valid EPC.
The EPC must be made available to prospective buyers at the earliest opportunity, so should be in place before the property is marketed. When marketing through an estate agent, the agent should check for the existence of a current EPC and help to arrange an EPC assessment if necessary. If you are selling a property privately, you can search for an accredited EPC assessor on the government website.
EPCs are valid for 10 years from the date of issue. If a property’s EPC has expired, a new assessment will need to be carried out in order to move forward with a sale. It is also best practice to obtain a new EPC where works have been carried out to the property that would change the energy rating.
A valid EPC must also be provided to prospective tenants when renting out a property, again subject to any relevant exemptions.
EPCs and rating
Currently, for domestic privately rented properties, the property must have an EPC rating of an E or higher in order to be let. There are proposals to increase this to a minimum rating of a C by 2030.
If the property does not meet the minimum rating, the property owner must either improve the property’s rating to the minimum required or otherwise register an exemption. Property owners can be fined up to a maximum of £5,000 for failure to comply.
Therefore, if you are purchasing a property with a view to renting it out, it is important that you review the EPC carefully. You should also discuss the EPC rating with your proposed letting agent, to ensure the rent requirements are met.
EPC exemptions
Perhaps the most well know EPC exemption is the listed buildings exemption. However, there is a common misconception that a property is automatically exempt from needing an EPC if it is a listed building. This exemption only applies if works are required to meet the minimum rating for renting and the works would unacceptably alter the building’s character or appearance. Otherwise, a listed building will still require an EPC in order to be sold or rented out. If you own a listed building and are in any doubt whether the property falls under this exemption, it would be best to discuss with local authority’s conservation officer for further guidance.
There are a few other exemptions, which are not usually relevant to residential transactions. These include exemptions for places of worship, buildings due to be demolished, and residential buildings and holiday accommodation used for less than 4 months a year. A complete list of exemptions is available on the government website.
There are also additional exemptions available for rental properties which do not meet the minimum rating, including where you have made all improvements that can be made up to the cost cap (currently £3,500).
If you are looking for a conveyancer to handle your sale or purchase, please contact our Residential Property Team at property@wansbroughs.com or on 01380 733367 for more information.
