Energy Performance Certificates explained

An Energy Performance Certificate (EPC) is required for any property that is let. It grades the building it two ways: demonstrating how efficient it is and how much it costs to run, as well as its environmental impact through its CO2 emissions. Both are rated from A to G, with A being the best and G being the worst.

However, what do you need to know about this as a landlord? Here is a quick guide to the most important features of the EPC.

When you need an EPC

You will need an EPC if you own a property that you are going to let out to tenants, or if you are planning on selling your property. There are a few other situations where you may need one, and you can find a good overview at the Gov.uk website.

How you can get an EPC

An EPC is simple enough to arrange. You simply have to get one from a commercial energy assessor, and you can find one near to you online using this search tool.

The type of building you own, including its features and how complex it is, will determine the type of assessor you need to hire.

Do you have to display it?

You may have to display your EPC in certain situations, such as if your property is over 500 square metres in size or if the public visit it frequently.

Situations when you may not require one

You do not always need an EPC. For example, you may not require one if you can show that the building is:

a listed building and the changes required would alter it too much;

only to be used for under two years;

a place of worship;

a detached building with less than 50 square metres of floor space.

There are a few other reasons, so check at the Gov.uk website to find out whether any apply to you.

Penalties for failing to show one

You could spend lots of money if you fail to arrange your EPC or show it to a tenant or buyer. The fines range from £500 to £5,000, and they are based on the value of the building.

Your building is an important investment (which is why you protect it with landlords insurance), and you do not want to end up paying fees unnecessarily that can eat into your profits.

Other useful information

Some other things to know include:

you need one EPC per flat, not per building;

you must show one when advertising a property;

it lasts for 10 years, even if you renovate the property;

if you buy a property that has an EPC, you can continue to use this as a landlord until it runs out;

you must provide a free copy of the EPC to the tenants.

Don't forget to order your EPC

An EPC is a necessity for most landlords, so make sure you arrange yours as soon as possible. There are many things to remember being a landlord, and you do not want to forget about something as important as the EPC. So start planning to get your own sorted out so that you do not have to worry about it again for the next ten years.


Author Bio:
Richard Burgess is Director of cover4letproperty (http://www.cover4letproperty.co.uk) a dedicated UK landlord insurance broker. Their easy to use site and friendly staff will get you multiple quotes from specialist insurers for landlords insurance at a competitive price.