Energy Performance Certificates (EPCs)

An Energy Performance Certificate (EPC) assesses how energy efficient a property is and how well it uses the energy supplied to it. Every rental property must have a valid EPC, rating the property from A (most efficient) to G (least efficient) and setting out recommendations for improving its efficiency. An EPC is valid for 10 years.

It’s a legal requirement to make a valid EPC available to prospective tenants as part of the marketing and letting process – it is an offence to market a property without one, and letting portals will generally refuse to advertise a property without a valid certificate on file.

The Current Minimum Standard: EPC E

Since April 2020, the Minimum Energy Efficiency Standards (MEES) have applied to all private rented properties in England and Wales — both new lettings and existing tenancies. Under these rules:

• A property cannot lawfully be let unless it has a valid EPC rating of E or above.

• If a property falls below an E rating, the landlord must carry out improvement works — currently capped at £3,500 (inc. VAT) — to bring it up to standard, unless a valid exemption applies.

• Failure to comply can result in financial penalties, and marketing or continuing to let a sub-standard property without a registered exemption is a breach of the regulations.

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What's Changing: EPC C by 2030

The government has confirmed that the minimum standard is rising. From 1 October 2030, all private rented properties in England and Wales will need to meet a minimum EPC rating of C (or hold a valid exemption) in order to be let.

• Higher spending cap. The cost cap for reaching the new C standard is rising to £10,000 per property (or 10% of the property’s value for properties worth under £100,000), up from the current £3,500 cap for reaching an E.

• New assessment method. EPC ratings are being reformed to focus more on a property’s actual fabric performance — insulation, glazing, heating system — rather than the running cost basis used today, so some properties may see their rating change even without any work being done.

• Higher penalties. Maximum fines for non-compliance are being increased significantly, with penalties of up to £30,000 proposed under the reformed regime.
With the 2030 deadline now only a few years away, and mortgage lenders and buyers increasingly factoring EPC ratings into their own decisions, it’s worth understanding where your property currently stands well before the deadline bites.

Exemptions

In a limited number of cases, a property may qualify for an exemption from the improvement requirement – though this is relatively rare. Common exemption categories include:

• Listed buildings, where energy efficiency improvements would unacceptably alter their character.

• Properties where the required works would cost more than the applicable spending cap – a cost cap exemption can be registered, valid for five years.

• Cases where installing certain measures (such as solid wall insulation) would be impractical or would reduce the property’s value by 5% or more.

All exemptions must be formally registered on the PRS Exemptions Register – an exemption isn’t automatic, and relying on one without registering it correctly won’t protect you from enforcement.

How Pure Lettings Can Help

We can arrange your EPC for you, carried out by an accredited assessor, so you can be confident your certificate is valid and your property is fully compliant before it goes to market.

• Cost: £90 inc. VAT — and remember, it’s valid for a full 10 years.

• We’ll flag your property’s current rating and let you know in good time if it’s likely to need work to meet the 2030 EPC C standard.

• We can point you toward trusted contractors and, where available, information on financial support for energy efficiency improvements.

Getting ahead of the 2030 deadline — rather than scrambling to meet it — is generally the cheaper and less stressful option. If you’re unsure where your property currently stands, that’s exactly what we’re here to help with.

Please contact us if you have any questions about EPC requirements and residential lettings.

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