Landlords, Social, & Student Housing EPC FAQs Energy Performance Certificates - Frequently Asked Questions

EPC FAQs - explores the commonly asked questions relating to the issue of an Energy Performance Certificate, exemptions and what cases actually require an EPC in the property rental sector for Social Housing, Student Housing and Property Rental, and Houses in Multiple Occupation.

The key points and in-depth analysis can be found on the CLG website, we have outlined the main guidelines here which have been extracted and quoted from official CLG material as highlighted.

Houses & Dwellings in multiple occupation

"Where individual rooms in a building are rented out and there are shared facilities (eg kitchen and/or bathroom), an EPC is not required. This because an EPC is only required on the rental of a building or part of a building designed or altered to be used separately. Renting a room does not meet the ‘part of a building’ definition.
An EPC is only required for a habitable unit if it is self-contained. This is therefore different to the requirement for Decent Homes inspections, where units which are not self-contained must be individually assessed. Landlords should be aware of this when holding EPC and Decent Homes data in common asset management databases."

Landlord & Tenant Responsibilities

"A summary of responsibilities is provided below:
• copy of the certificate: the landlord must provide the whole EPC (including the recommendations report) free of charge to the new tenant
• understanding the running costs: though this is not an obligation, the landlord should advise the tenant that the estimated running costs (a) are based on standardised consumption (number of occupants and hours of heating per day) (b) take into account costs for heating, hot water and lighting only and do not include the cost of appliances and (c) are based on average fuel prices current when the EPC was produced. The running costs could have been estimated up to 10 years previously and will not refl ect the higher rates typically paid by those using prepayment schemes.

• implementing the report recommendations: there is no obligation on the landlord to carry out any of the measures. Tenants can act on the behavioural advice (eg turning down a thermostat). Typically it is likely to be the landlord who carries out physical improvements
• understanding what the recommendations mean. The potential rating is based on the adoption of all of the cost-effective measures. These are separated into lower cost measures (up to Ł500) and higher cost measures (over Ł500). In some cases, adopting a measure may improve energy efficiency but may not be sufficient for the dwelling’s energy rating to improve by a whole band
• although a measure may improve the dwelling’s energy efficiency, it may not be cost effective for the landlord to replace existing equipment that is relatively new, eg a boiler. Furthermore, even if a dwelling has the potential to be improved, the landlord is under no obligation to do so
• understanding the Further Measures section: this section includes measures that those who are very keen to invest in energy efficiency may want to consider, but which are considerable investments with long payback times (over seven years). Tenants need to understand what these mean and that it may not be realistic to expect a landlord to install these measures
• understanding how the EPC fits with other improvement programmes:
Tenants who are having other improvement works carried out (eg for Decent Homes programmes) should understand what these programmes are, and why any works may not be the same as the improvements recommended on the EPC"

EPC Frequently Asked Questions

A number of questions have arisen upon the introduction of EPC's in the rented property sector the following examples are typical of questions raised:

"Q. Is it possible to advertise a property before the EPC has been produced?
A. There may be occasions when it is possible to offer a dwelling for rent before the EPC is available. However this should not be the norm. The landlord will be expected to have made contact with a DEA and commissioned the EPC with a view to receiving it within two weeks of the date it was commissioned.

Q. If an EPC is being produced when the dwelling is empty, what impact will occupying tenants have on the accuracy of the energy and environmental
ratings?
A. The occupying tenant will have no impact on the EPC ratings, as these are produced using standardised occupancy data (ie number of occupants and
hours of heating per day).

Q. What if the tenant wants to buy the dwelling they already occupy? Can I use the same EPC as I used when they took the tenancy?
A. If the tenant wants to purchase the dwelling they rent, the same EPC can be used. This is because it is a non-marketed sale not affected by the HIPs Regulations. An EPC is required but this can be up to 10 years old. However, if the dwelling is also being placed on the open market, the EPC must be no more than 12 months old because it is affected by the HIPs Regulations.

Q. Is an EPC needed if tenants are moving via a mutual exchange?
A. If advertised for exchange via a choice based lettings system, then an EPC will be required. If the exchange has been agreed privately than an EPC is not
required.

Q. Can a landlord charge a tenant for the provision of an EPC?
A. It is not permitted for the landlord to charge for the provision of the original EPC. However it is permissible for a tenant who has already received the EPC to be charged for the provision of a copy document.

Q. How do I decide whether to keep the work in-house or use an external
contractor?
A. This is a decision for individual landlords. A key factor to consider when choosing between in-house and external DEAs will be the size of the landlord’s portfolio and expected frequency of turnover.

Q. Is it possible to amend and update an EPC without the need to commission a new survey? A new EPC might be wanted, for example, if a replacement boiler is fitted.
A. A DEA who issues the EPC would need to be satisfied that it accurately reflects the energy performance of the property. The DEA may be satisfied through means other than a full survey.

Q. Is it always the building owner who is responsible for producing the EPC? What if the building owner has no direct relationship with the tenants?
A. Where a tenant sub-lets a dwelling, the responsibility to make an EPC available lies with the sub-leaseholder.

Q. Is an EPC needed for shared ownership dwellings?
A. The first equity purchase of the dwelling creates a trigger for an EPC to be produced. The purchase of subsequent equity does not create a need for a
further EPC.

Q. What happens in the case of Stock Transfer? Can we have one EPC for a whole block in that case?
A. For a stock transfer an EPC is required for each dwelling. However, it may be possible to employ techniques which will reduce the number of dwellings that
need to be assessed. Separate guidance will be available on these.

Q. What happens if I need to get an EPC to advertise the property, but I am going to improve before the new tenant moves in?
A. Either explain to the tenant that improvement works were carried out since commissioning the EPC and so the dwelling’s energy efficiency rating may now have changed, or commission another EPC after completion of the improvements.

Q. Will I have to issue an EPC if I have a lodger in my house?
A. A letting of a room within your larger household does not constitute a rental of a building or part of a building therefore an EPC is not required.

Q. Will I need to show an EPC to prospective residents of, for example, a care home or a boarding school?
A. These examples do not constitute a rental of a building or a part of a building. Therefore an EPC is not required.

Q. Is an EPC required under a long term Regulated tenancy where a tenant dies and a partner, member of their family or other individual is able to succeed to
the tenancy under the Rent Act 1977?
A. Under such circumstances an EPC is not required.

Q. Will an EPC be needed for holiday accommodation?
A. If the agreement between the parties expressly allows for a short period of holiday occupation only and no intention to create a tenancy can be inferred,
then an EPC is not required."

We regret we cannot enter into any correspondence regarding specific cases on this website regarding EPC's.

Further reading:

Landlords EPC - Landlords Energy Performance Certificates we examine the affects of the introduction of Landlord Energy Performance Certificate (EPC) and the introduction of EPC's and how it may affect the private owner or landlord who may provide rental property and property to let. If you need a landlord energy certificate, for rental property, lettings EPC, rented accommodation, EPC buy-to-let property, Residential Lettings EPC, social housing, HMO (Houses in Multiple Occupation), student accommodation see our register of independent providers below.

An EPC provider can assist in the provision of energy inspection services and the issue of certificates for rented accommodation. Domestic Energy Assessors can issue an EPC for rented property, these can only be issued by an approved Energy Assessor
New Build homes for rent require Energy Assessment by an authorised energy inspector, refer to SAP Energy Assessors for further information.

Tenants may take a keener interest in the energy rating of homes for let, in order to assess the potential energy usage of such buildings, a higher energy rating, means lower fuel bills. Owners of rental property can find tips on improving energy ratings, please refer to Energy Saving Tips and Advice

In order to assess a properties performance and gain an energy rating certificate, owners of rented property must enlist the services of an energy assessor who will conduct a survey using the full SAP methodology if required, some HMO's fall into this category. The inspector must be licensed and accredited by a professional body.

Further Reference:
Energy Ratings
Energy Assessment Ratings for New Build Property
Energy Assessment Ratings for Existing Property
Where can I find a Commercial Energy Assessor?
Training & Accreditation

Energy Performance Certificates (EPC) have the potential to change the private rental property market in a profound way. Shrewd investment in the current climate may well prove lucrative in tomorrow's future. Landlords should consider investment to improve energy efficiency of their premises, this helps to ensure their asset is energy efficient and, may offer better potential to those tenants seeking property with higher energy ratings, and, therefore lower energy bills for prospective tenants looking for property to rent.

Owners of private rental premises will need to appoint a qualified energy assessor and obtain an Energy Performance Certificate (EPC)

Where buildings for mixed use (i.e. combining a dwelling and non-dwelling) is constructed, sold or rented out.

This should be treated as a single dwelling if the commercial part can be converted back to residential use and there is common access i.e. each part does not have a separate access (for example, where within a house a portion has been separated out as a workshop, office, surgery or other type of business)

For other cases, treat the dwelling and non-dwelling parts separately using the most appropriate energy rating methodology for each element. For example, if a building contains both flats and offices use SAP or RdSAP for the flat (i.e. a domestic energy assessor) and SBEM or DSM ( i.e. a commercial energy assessor) for the offices. A commercial energy assessor is more likely to be qualified to conduct an energy inspection of such a property, as it is possible that the accredited person is already qualified as a DEA - Domestic Energy Assessor.

Energy assessment of property is already underway and the timetable for the deadline for EPC's has been established.

For commercial premises and public buildings, must be inspected by an authorised SAP Assessor, energy calculation for these types of buildings differ from domestic property. Full SAP or SBEM methodology is used for industrial premises.

Currently, property landlords will require an energy certificate for properties from October 2008. Owners can voluntarily provide a certificate up to the proposed deadline, after this time an energy certificate will be mandatory. See also landlords and tenants for more information.

If you are a Landlord looking to find an independent assessor for the issue of an Energy Performance Certificate in your local area please select from the listing below:

Commercial Energy Assessors Energy Performance Certificates EPC Property Inspectors DEC Providers- For commercial property inspectors, buildings inspectors, energy performance certificate DEC (EPC) providers.

Energy Performance Certificates (EPC) Domestic Energy Assessors - If you require a Rented Property EPC in Nottingham or a Landlords EPC in Nottingham or Nottinghamshire please contact us.

DEC - Display Energy Certificates

SAP Energy Assessors

SBEM Energy Assessment

Energy Ratings

Commercial EPC

EPC Timetable

Training & Accreditation

Does My Building Need An Energy Performance Certificate?

Energy Assessment Ratings for New Build Property

Energy Assessment Ratings for Existing Property

Commercial EPC Training Courses

Where can I find a Commercial Energy Assessor?

Landlords EPC