Any property being sold, let, or constructed will need an EPC, as per the Energy Performance of Building Regulations 2012. EPCs are produced by qualified energy assessors and based on reduced data standard assessment procedure (RdSAP). The assessment looks at the following: -
- The age of the property
- Materials used to build it
- Single/double glazed windows
- Type of heating/HW and controls
- Type of lighting
EPC Ratings in bands A-G (100-1)
- A is best (92+)
- G is worst (1-20)
Marketing
The landlord and agent can market the property for 7 days and a further 21 days while they have instructed an EPC. While they are waiting for an EPC, they cannot provide property details to prospective buyers, renters or carry out any viewings. The penalties for not having an EPC are £200 per breach. EPC certificates are valid for 10 years from the date of issue.
When you don’t need an EPC
Some properties don’t need an EPC, this includes:
- When you need to renew existing lease, and the property and parties are the same
- Listed buildings often don’t need one
- HMO Properties don’t need an EPC to let the property
- HMOs let to a group need an EPC
Minimum Energy Efficiency Standards (MEES)
If property has energy rating of F or G, the landlord MUST spend £3,500 including VAT to improve it. If the improvement still means the property has an F or G rating, they can apply for an exemption. Exemptions generally last for 5 years
Exemptions
Exemptions available because of
- High cost – e.g., the cheapest improvement costs are more than £3,500,
- After all improvements made and £3,500 spent and still an F or G rating.
- Wall insulation, adding wall insulation may not be appropriate (e.g., exposed)
Expert report needed
- Consent issues, consent is required from a 3rd party and not given
- Works devalue the property, if the works devalue the property by more than 5% then an expert valuation will be required (Rics or other qualified experts)
- Certain New Landlords, if a landlord becomes a landlord by default, exemption lasts for 6 months only.
Penalties
MEES Penalties are between £1,000-£4,000 per breach depending on the breach and appeals against penalties are overseen by the First Tier Tribunal (FTT).
Mohammed Jamil
BSc (Hons)
Property professional with over 20 years of experience, bringing you the latest property news and regulation.
