Buying a house is exciting, but there are some things you need to know before exchanging contracts. What about an EPC?
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There are a lot of red tapes to be aware of when you’re renting out a property. One thing that landlords might not be so clued-up on is their Energy Performance Certificate or EPC. An EPC is a document filled with numerical testing data that rates the energy efficiency of a building’s fabric and equipment.
Landlords in the UK have a legal obligation to provide an Energy Performance Certificate to prospective tenants, but what is this document, and why do you need it?
Find out all you need to know in the article, including the top ten reasons why landlords everywhere rely on the EPC.
They say that 90% of UK renters now choose properties online before deciding whether to visit the actual property. But when looking for properties on popular listings sites, the pictures might not tell the whole story- tenants need to know what kind of environmental conditions the landlord provides!
And with a Building Energy Performance Certificate (EPC), you’ll be able to see how well your future home would be insulated, what equipment for heating and cooling you can expect, how efficient the water usage is, and more.
In this article, I will tell you why a landlord should get an EPC certificate and the benefits it has on their property, and how and where to go about getting one of your own.
Reasons Landlords Are Required To Have an EPC Certificate
In the UK, landlords must have an Energy Performance Certificate from a qualified assessor. The certificate provides information about how energy efficient the property is, how much energy bills could be, and what improvements may need to be made to reduce the bills. This information can help a landlord decide if renting out a particular property is worth it.
Time Scales and Monitoring of The Installation of The Property’s Gas Safety
The Gas Safe Register says that you will need a valid and up-to-date EPC; otherwise, “Your landlord needs to get an EPC for your home, or take responsibility for paying for a gas safety check. They will also need to hire a competent person such as an engineer or a surveyor to do the work.”
Can I Still Evict a Tenant If I Don’t Have an EPC Certificate?
Landlords who have their property in the United Kingdom must produce an Energy Performance Certificate (EPC) for any rent-paying tenants. This requirement was put into place in 2007 and is still in effect.
The only exception is when the property is being used solely by the landlord or a close relative or spouse of the landlord. Tenants should be notified of the EPC certificate when they visit a list of houses with potential vacancies. If they refuse to continue negotiations, there can be grounds to serve them with a section 8 notice on day two after their refusal.
What Can Happen If I Don’t Get An EPC Certificate?
If the property you intend to rent out has not got an EPC certificate, the tenant can apply for their one. This could mean that half of your monthly expenses are the tenant, service charges, and council tax. More importantly, if there is a problem with water supply or electrics, which needs to be fixed due to a leak in a pipe or defective wiring, they could withhold payment while the issue is sorted out.
Is There a Time Limit for Αrranging Αn EPC Ιnspection?
It’s in the landlord’s best interest to arrange an EPC appointment as soon as possible – it only takes a couple of minutes to do and can save thousands of pounds.
The standard time limit is 28 days from receipt of the tenant’s application; otherwise, there are penalties.
Charging tenants for this service is illegal, and doing so could invalidate their license to operate as property agents.
An EPC Certificate is required by law for a property to be rented out and exemption from energy performance legislation relating to carbon dioxide emissions – landlords may even need gas safety certificate inspections.
What Are the EPC Certificate Types?
The Energy Performance Certificate (EPC) is a standardized certificate that measures energy efficiency based on heating systems, insulation, and ventilation. There are three types of certificates:
A full certificate is sent to or connected to the house, detailing the energy rating of each property. This can be used by individuals looking to purchase a property, providing them with information on the annual energy consumption of the property.
A summary certificate is delivered to the seller and buyer with a copy held by an independent third party.
A completion certificate is issued when contracts are exchanged after construction.
Who is Exempted from Obtaining an EPC Certificate in the UK?
Any landlord renting out a property in the UK who is nominated on the title deeds or has signed a contract of tenancy needs an EPC certificate from the gas safety show. The landlord may attempt to negotiate without having an EPC, but it is up to the tenant to apply for one if negotiations fail. Technically, landlords are not compelled by law to prove to renters that no “dangerous substance” is present in their property, yet this certificate may potentially be beneficial, especially considering that it’s not expensive and easy to acquire.
Houses exempted from obtaining EPC Certificate in the UK are:
- Residential properties
- Council dwellings
- Owner-occupied properties with a length of occupation of 14 years
- New build dwellings for sale, development, or conversion for the need of heat and hot water
- Buildings where residence does not constitute more than 50% of the total floor area.
- Unoccupied private residential houses in rural areas are unlikely to pose health risks.
A landlord needs to get an EPC when they want to sell their property. If a landlord has the certificate and wants to sell the property, it will be in the interest of prospective buyers. An EPC gives information about how energy efficient a building is, how well it is heated, ventilation and lights work, how much recyclable or organic waste is generated in a year, and more.Book your EPC Inspection appointment with one of our qualified Energy Assessors! Through MyConstructor.co.uk. you can easily compare prices and reviews of professionals around the UK and book the one that suits your needs!