An EPC must be obtained before a building is marketed for sale or rent. Where an agent has been engaged to sell or to rent out a building, they must include the energy performance indicator from the EPC in all commercial media/marketing material produced for that building.
When you need an EPC in London?
EPCs are now legally required whether you are renting out or selling a home as of 2008. You must arrange for an EPC if you own a business property that you wish to sell or lease.
The necessity for an EPC has various exceptions. They consist of:
- a leased space within a home (a self-contained flat within a larger house that has its own front door and facilities will need one)
- Several types of listed structures
- A piece of real estate that cannot be altered to become more energy efficient
What information are listed on an EPC?
An EPC will resemble the colourful label you find on brand-new home equipment. It will consist of:
- a score for energy efficiency
- The anticipated expenses of maintaining your house
- a list of characteristics linked to energy performance
Your property’s energy efficiency will be reflected in the EPC’s energy efficiency rating. This is ranked from A to G, as we previously indicated.
A property that is older and has not had energy-saving upgrades would likely receive a D. For failing to fulfil this minimal efficiency standard, landlords must receive at least an E grade and risk a fine of up to £4,000.
You can determine how energy-efficient certain components of your home are by looking at the summary of elements relating to energy efficiency. Use it as a reference to choose which areas to improve first when increasing the energy efficiency of your house.
EPC requirements for landlords
You might have to pay more to raise your EPC rating on top of the original cost of having your house appraised and an EPC produced.
A property with an EPC rating below E cannot be rented out. Therefore, if you wish to rent out the property, you will have to pay to raise your rating.
Landlords cannot rent out or keep renting out houses with an EPC rating below E as of 1 April 2020 unless they have a legitimate exception in place. There is a list of exemptions on the official website. Your property is probably not exempt, though. In order to get a better rating, you could have to pay hundreds of pounds.
As a result, the government has set a limit on how much you can spend. This implies that the maximum amount you will ever have to spend on energy efficiency upgrades is £3,500 (including VAT).
Of However, if your house can be upgraded to an EPC E for less money, you won’t need to spend up to £3,500. You will have fulfilled your responsibility if you can upgrade your home to E for a price below the cap.
The government advises installing all suggested measures that can be implemented within that amount if upgrading your house to E will cost more than £3,500, at which point you should register for an exemption.
Since October 1, 2017, any energy efficiency upgrades you’ve made to your home are eligible for the £3,500 cost cap.