An Energy Performance Certificate is compulsory whenever a building is built, sold or rented and must be must be ordered before the property goes onto the market. EPCs are used to rate the energy efficiency of a property by looking at the energy used and carbon dioxide emissions.
The EPC graph will also indicate where it is possible to improve the energy rating and make recommendations. For example, fitting loft insulation could improve energy efficiency, save money and potentially improve the property’s EPC rating.
It is not mandatory to make changes based on the recommendations, but tenants may be attracted by a better EPC rating. The average property’s EPC rating is ‘D’, so having a superior rating could be a good comparison point for a tenant, as all properties are measured in the same way.
Whilst acting upon these recommendations is not mandatory, new legislation being introduced from 2018 means landlords will be banned from letting properties with an EPC rating below ‘E’. This new legislation is a bid to cut energy bills and carbon emissions. If a property you are considering letting has a rating of ‘F’ or ‘G’, you will need to make improvements before you are able to let it, in 2018.
Also, from April 2016, tenants living in properties rated ‘F’ or ‘G’ are able to request improvements, such as better insulation. Their landlord will be legally obliged to make the requested changes and bring the EPC rating up to at least ‘E’.
A better EPC rating ultimately means a more efficient property, which results in cheaper bills. This could attracts more tenants who don’t want to spend a fortune on bills!
If you’d like more information on Energy Performance Certificates, new legislation or to arrange your EPC, contact Prospect today by clicking the button below.