Energy Efficiency Guide for Landlords
Energy usage and energy efficiency have become heated topics recently with the rising cost of living which has been heavily impacted by electricity and gas prices. According to the Office of National Statistics, electricity prices in the UK rose by 66.7% and gas prices by 129.4% in the 12 months leading up to February 2023.
The government is making efforts to reduce the knock-on effect to customers such as the Energy Price Guarantee which limits the amount suppliers can charge. Tenants and landlords are still experiencing the effects of rising energy costs; 53% of adults in Great Britain said they are using less fuel, such as gas or electricity, in their homes because of the rising cost of living.
Energy Efficiency Standards
The UK government outlined some the Minimum Energy Efficiency Standards in 2017 which help to provide guidance for Landlords and Households trying to meet Energy Efficiency Standards.
These standards cover necessary information that like finding out if a property is covered by the Minimum Energy Efficiency Standard (MEES) Regulations.
These regulations apply to properties such as:
- An Assured Tenancy
- A Regulated Tenancy
- A Domestic Agricultural Tenancy
- A property that has been marketed for sale or let, or modified, in the past 10 years (and therefore requires an EPC)
If a property meets any of these criteria, then it requires an Energy Performance Certificate (EPC) and this has to be at least an E rating so F and G would not meet the regulations.
New Changes to EPC Regulations for Landlords in 2025
These regulations are however set to change in 2025 and become a lot stricter to regulate EPC ratings more closely. The proposed changes will require landlords of rented properties to have an EPC rating of at least a C. An invalid EPC could result in a hefty £30,000 fine.
This will initially only apply to new tenancies, but all tenancies will be affected from 2028 onwards.
Learn more about EPC assessments with Cook Brown >
Which Properties don’t need an EPC?
Listed and protected properties don’t need an EPC, especially if the work is expected to alter the building. Some other properties that are exempt include:
- Certain industrial sites
- Places of worship
- Temporary buildings (up to 2 years)
- Detached buildings (up to 50m floor space)
- Soon to be demolished buildings
Should I Give my Tenants a Copy of the EPC?
All tenants are entitled to a copy of the EPC for the property they are renting. Your property can’t be legally let without one so it’s important documentation for both the landlord and tenants. In addition to an EPC, your tenants will also require a How to Rent Guide, EICR and Gas Safety Certificate. Without these, a landlord cannot issue a Section 21 notice.
Your tenants can easily access the latest EPC for the property in case they need an additional copy. The governments find an energy certificate service can be used to find an EPC, DEC and air-conditioning reports.
How Landlords Can Improve Their EPC Ratings
Whether your property failed the EPC checks, or you’d like to make sure you’re reducing energy wastage as much as possible, there’s a few things you can do to help. A lot of properties will need to improve their ratings by 2025 or 2028 if the landlords still want to be able to let them out. Here’s a few top tips to make things easier:
- Install a Smart Meter.
- Install an energy-efficient boiler.
- Install LED lights where possible.
- Proper insulation for the walls and roof.
- Double or triple glazed windows.
If you wanted to significantly improve the EPC rating of a property, renewable energy can be very helpful with this. Investing in things like solar panels and ground source heat pumps can considerably improve the EPC rating of a property.
In England and Wales you are able to spend up to £3,500 on energy efficiency improvements if you’re planning on meeting the minimum energy efficiency standards. If you have to spend over this amount then you can apply for high-cost exemption via the PRS Exemption Register. This exemption will last for 5 years, and the property is exempt until funding or other obstacles are addressed.
Helping Tenants Improve Their Energy Efficiency
Whether you or your tenants are paying the bills, it’s always good to encourage energy efficiency. There’s not much tenants can do but if they have their own appliances then making sure they have energy efficient appliances is a good starting point. Responsible energy usage is also important as it can curb some of the effects of poor energy efficiency.
GoCompare have developed an interactive energy cost calculator tool to find out how much something costs to run. Tenants could use the calculator below to pick appliances to compare and find out where they could reduce usage and money – https://www.gocompare.com/gas-and-electricity/guide/energy-calculator/.
Energy Efficiency Consultancy with Cook Brown
This guide discussed some key considerations for energy efficiency as well as the minimum requirements and standards. Hopefully it gave you a better understanding of what you can do as a landlord to meet the requirements and ensure your tenants have a liveable home for the colder months. As outlined in this guide, an EPC rating is very important and something both Landlords and Tenants need to be aware of.
We provide a range of services for Energy Consultancy Services, our list of services include:
- Dedicated Energy Consultancy
- SAP Assessments
- SBEM/DSM Assessments
- Energy & Sustainability Statements
- Value Engineering
- Overheating Risk Analysis
We also provide Energy Assessment services such as providing an EPC rating so get in touch today to find out how we can make your property more energy efficient.