What is the EPC Certificate in the UK and Who Needs It?
In recent times, when applying for a mortgage, we’ve noticed that banks increasingly require an EPC (Energy Performance Certificate) for the property being purchased. Some banks even have a dedicated section for this in their systems. Let’s break down what an EPC certificate is, who needs it, and what changes buyers and sellers can expect.
An Energy Performance Certificate (EPC) provides a detailed picture of a property’s energy efficiency and CO2 emissions.
As a landlord, you must ensure that your property meets the latest EPC requirements—specifically, the Minimum Energy Efficiency Standards (MEES).
How to Get an EPC Certificate in the UK?
If you need to arrange a new EPC certificate in England, Wales, or Northern Ireland, start by visiting the official government website. There, you can find out which type of assessor you need – this depends on the type of property you’re applying for.
The process generally involves filling out an online form and scheduling a visit from an assessor. Shortly after, you’ll receive your EPC electronically.
This is a quick and easy way to get your energy efficiency certificate at any time, without the need for an in-person meeting. Online applications are often processed faster than those made in person.
To get the certificate, an energy consumption inspection must be carried out by a local energy assessor.
This usually takes about an hour and costs around £70, including VAT.
The assessor will inspect both the interior and exterior of your property to determine its energy efficiency, as well as assess where improvements can be made.
What Will Be Assessed?
Windows, roofs, walls, insulation, boilers and heating systems, renewable energy devices like solar panels, lighting fixtures, fireplaces, building size, and age.
After the inspection, your property’s energy efficiency will be rated.
An “A” is the best score, while “G” is the worst. Currently, your property must have a valid EPC rating of “E” or above to be legally rented out.
Latest Changes in EPC Certification in 2025
The latest minimum energy efficiency standards have been in effect since April 2020 and apply to all existing rental agreements, not just new ones or renewals.
However, in December 2020, the government announced new standards for England and Wales, which are set to become law by 2025.
From this date, all rental properties must have an EPC rating of “C” or above. As before, these new rules will apply initially to new tenancies, and then to all existing tenancies by 2028.
These changes are aimed at making homes far more energy-efficient and reducing carbon emissions to help the government achieve its net-zero target by 2050.
The penalty for not having a valid EPC certificate will increase from £5,000 to £30,000 by 2025.
How Long is an EPC Certificate Valid?
An EPC certificate in UK is valid for 10 years. However, when it expires, you’ll only need to get a new certificate if you’re entering into a new tenancy or selling your property.
Tenant Rights
As a landlord, you must notify tenants in writing at least 24 hours before the assessor’s visit.
Most tenants will welcome the energy efficiency assessment, as it’s a legal requirement, and properties with good EPC ratings tend to be more cost-effective and comfortable to live in.
As a tenant, you have the right to a copy of the EPC for your home and can request it upon moving in. If you want to check the EPC rating of your property, simply visit the Government’s Energy Performance of Buildings Register, enter your postcode, and click on your address.
Likely Costs of Improving an EPC Rating and Tax Implications
It’s hard to estimate the exact cost of improving your rating without knowing the work required. It has been estimated that raising a property from a “D” rating to “C” or higher may cost around £10,000 in the near future.
Unfortunately, improvements made to increase your EPC rating are considered capital expenses, not repairs or maintenance, meaning they cannot be deducted from profits to reduce your tax bill.
Properties Not Covered by the Minimum Energy Efficiency Standards and EPC Requirements:
- Protected buildings that will undergo improvements.
- Temporary buildings used for less than two years.
- Some workshops and industrial properties.
- Standalone buildings smaller than 50m².
- Buildings designated for demolition.
