EPC rules for landlords in England and Wales

The minimum standard

Under the Minimum Energy Efficiency Standards (MEES), domestic private rented property in England and Wales must normally have an EPC rating of E or above. This applies to new tenancies and to existing ones, so a property already let is not exempt simply because the tenancy started earlier.

You need a valid EPC to demonstrate the rating at all. If the certificate has expired, you cannot show compliance — and you must provide a copy to the tenant at the start of the tenancy in any case.

Exemptions, and how they work

Exemptions exist, but they are not automatic. Each must be registered on the PRS Exemptions Register, and most last five years, after which you must try again. The common ones are:

• All relevant improvements made — you have carried out every measure that can be funded within the cost cap and the property is still below E
• High cost — no measure can be installed within the cost cap
• Wall insulation would damage the property — supported by a suitably qualified independent report
• Third-party consent refused — the tenant, freeholder, lender or planning authority has refused consent for the work
• Devaluation — an independent surveyor's report shows the measures would reduce the property's market value by more than 5%
• New landlord — a temporary six-month exemption for someone who has recently become a landlord in specific circumstances

What happens if you get it wrong

Enforcement is carried out by the local authority, which can serve a compliance notice and impose financial penalties, with the maximum depending on the breach and how long the property has been let non-compliantly. Penalties can also be published on a public register.

There is a practical consequence too. Letting agents increasingly refuse to market a non-compliant property, and lenders on buy-to-let products ask about the rating at application.

Planning ahead rather than reacting

The sensible approach for a portfolio is to know the rating and expiry date of every property in one list, and to deal with the weakest ones between tenancies rather than during. Work is cheaper, faster and less disruptive in a void period, and you are not negotiating access with a tenant while a compliance deadline runs.

Where several properties are close together, assessments can usually be grouped into a single visit round, which keeps the per-property cost down.

EPC rules for landlords — common questions

Does the E rating rule apply in Scotland?

Scotland has its own regulatory framework and different requirements. This guide covers England and Wales.

Do HMOs need one EPC or several?

It depends on the layout. Self-contained units each need their own certificate. A shared house let as a single dwelling normally needs one.

Do listed buildings need an EPC?

Some listed buildings are outside the requirement where compliance would unacceptably alter their character, but this is not a blanket exemption and should be assessed case by case.

Read next

• How to improve your EPC rating — Not every energy improvement moves an EPC score, and some of the cheapest changes move it more than the expensive ones. Here is what counts.
• How long does an EPC last? — An EPC lasts ten years from the date it is lodged — but there are several situations where the one you have is no longer any use to you.

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