Have an existing buy to let and unsure of the current rules on Energy Performance Certificates (EPCs)? Looking at buying a new property and worried about future costs by changes in the law that may impact the profitiability of your investment? Here are the latest rules and expected changes to the EPC requirments of buy to let landlords.
What if an EPC rating?
An Energy Performance Certificate (EPC) gives detailed information about a property’s energy efficiency and carbon dioxide emissions.
To receive an EPC, you must have an Energy Assessment Survey carried out at your property. Your Domestic Energy Assessor will perform internal and external inspections to determine how energy efficient your building is and what possible level of efficiency is achievable if improvements are made.
EPC certificates can be reviewed online on the government link here.
What Does an EPC include?
Your property will be given an overall score and coresponding grade between A-G based on the energy efficiency of the walls, roof, windows, heating system, hetaing controls, lighting, flooring, etc.
You will be given a current score along with an assessment of what the potential EPC rtaing of the property is. In order to be able to reach this potential EPC rating you will also be provided with a step by step breakdown of how to achieve this improvement which includes an estimate of the cost of works, typical yearly savings and the potential rating after completion of each step.
How long does an EPC last?
Once the EPC is issued, it is valid for 10 years. Once it runs out you don’t need to get a new one unless you are entering a new tenancy agreement or selling the porperty.
What’s the cost of an EPC assessment?
The cost of an EPC assessment varies by supplier but normally starts at around £60 but it’s always worth getting a few quotes to compare local suppliers.
What’s the current minimum EPC requirement for buy to let properties?
As of the 1st April 2018 the EPC rating required to let out a buy to let property is an E or above.
As of the 1st April 2020 this requirement now applies to all tenancies, not just new ones or renewals.
What are the expected future changes?
The government has proposed that all new tenancies from 2025 will need an EPC rating of at least C or above.
They have also proposed for this requirement to be extended to all tenancies from 2028.
For all landlords that are currently looking for a new property, this is certainly worth keeping in mind as it may be an investment that will need to be made in the future.
*All information up to date at time of writing, speak to your advisor for specific advice for your own circumstances.
