Energy performance certificates (EPCs) explained

A good energy-efficiency rating should indicate that utility bills will be lower

In 2006 the government introduced the compulsory use of home information packs (HIPs) when selling a property. Included in the HIP is an energy performance certificate (EPC), which assesses the energy efficiency of a home. 

From 1 October 2008, in order to market your property for rent, you will also need to have an EPC available for prospective tenants to view. If you don’t, you could be fined up to £200. 

The only exception is houses of multiple occupation (HMO) properties, which are exempt from having an EPC as they typically have to abide by stricter rules and regulations.

What is an EPC?

This document is valid for 10 years and shows how good – or bad – the energy efficiency of your property is. It grades the property’s energy efficiency from ‘A’ to ‘G’, with ‘A’ being the highest rating. 

If you have a new-build property, then it’s likely to have a high rating, and if you have a second-hand home, it’s likely to be around ‘D’ or ‘E’. 

The EPC will also recommend how the rating could be improved, with suggestions for loft, floor and wall insulation, double glazing, and energy-efficient light bulbs. 

The theory is that the better the rating your property gets, the more attractive it should be to a tenant as it indicates lower energy bills.

EPC information for tenants

From 1 October 2008, whether you’re looking to rent a property from a landlord privately or a through letting agent, they must produce an EPC. If they haven’t got one to hand, it suggests that they’re not up to date on the latest rental rules and regulations and you may want to look elsewhere. 

Secondly, the better rating the EPC gives the property, the lower your utility bills are likely to be – with the rising costs of gas and electricity, this could save you hundreds of pounds a year.

EPC information for landlords

As a landlord you can produce the EPC yourself, but it can be a very expensive way of doing things. Becoming an accredited assessor can cost thousands of pounds, so whether this is worthwhile depends on the number of properties you have. 

If you’d rather get someone else to do it, you’ll find that most EPCs are completed by an accredited energy assessor. The cost is around £50 to £100 per property. For a comprehensive list click here.

Alternatively, if you’re using a letting agent, they’re likely to be working with a company that provides EPCs and may have negotiated a better deal than you can on your own.

What are the benefits of an EPC to a landlord?

Whether you let privately or via a letting agent, it’s worth making sure tenants understand you have made the effort to produce an EPC. 

Secondly, if your property’s EPC rating is above the average ‘D’ rating, it’s likely the utility bills the tenant will pay will be less than other properties they may be considering. This is one way of showing tenants that you are a conscientious landlord and your property is being let within the law. It may also help ensure that the tenant chooses your property over others.

What happens if you haven’t got an EPC?

If you have a property that you let or re-let after 1 October 2008 and you can’t produce an EPC for it, you’ll be marketing your property illegally and may be fined up to £200 for not having the certificate. This could mean you lose an existing or potential tenant and will therefore leave your property empty.

For more information on renting your property buy the Which? Renting and Letting book, by Kate Faulkner.