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Do I need an Energy Performance Certificate?

Our expert says...

Hello Gregory,

Your friend is absolutely right; if you want to rent out your home while you are travelling, you will have to apply for an Energy Performance Certificate.

Since October 2008, whenever a building is built, sold or rented out, it must have a certificate showing its energy efficiency grade, by law. Read my guide below to find out more on Energy Performance Certificates.

Who needs an Energy Performance Certificate?

As of October 2008, the law requires all properties that are built, sold or put up for rent in England and Wales to have an Energy Performance Certificate (EPC). Northern Ireland and Scotland are currently producing their own regulations.

• Sellers or buyers of homes - All sellers of homes need to ensure that they provide a Home Information Pack, which includes an EPC for potential buyers.
• Builders - An EPC needs to be provided to buyers of newly built properties.
• Landlords - If you are a landlord, you’ll need to make an EPC available to prospective tenants the first time you let a home after 1 October 2008. EPCs are only required for properties which are self-contained; so if you’re renting a room to a single tenant sharing facilities, it is not necessary.
• Tenants - If you are looking at renting an entire property then the landlord must make an EPC available to you free of charge.

Even if you do not fall into the above categories, you can still apply for and receive an EPC. This may be because you want to know what the energy efficiency of your home is and implement improvements suggested by the recommendation report.

Make sure you sign up with Smartlandlord.co.uk and get discounted rates on your energy performance certificate.

What is an Energy Performance Certificate?

An Energy Performance Certificate (EPC) gives homeowners, tenants, landlords and potential buyers a certificate on the energy efficiency of their property. An EPC gives a building a standard energy and carbon emission efficiency grade from A to G, with A being the most efficient and G the least. Currently, the average rating* for homes in the UK is D.

The diagram below shows an example of an energy efficiency rating graph for an average home:

The ratings are similar to those found on products such as fridges and washing machines, and are standard so the energy efficiency of one building can be easily compared with another similar building.

The rating is a measure of a home’s overall efficiency. The higher the rating, the more energy efficient the home is, and the lower the fuel bills are likely to be.

An EPC also includes a property’s environmental impact rating. This is a measure of a home’s impact on the environment in terms of carbon dioxide (CO2) emissions - the higher the rating, the less impact it has on the environment.

What does an Energy Performance Certificate show?

As well as giving an energy efficiency rating for your property, the certificate also includes a recommendation report, providing information and ways to improve the energy performance of the property.

The report lists:

• Recommendations on improving energy performance, such asfitting loft insulation, or cavity wall insulation
• the approximate cost of the renovations
• the potential cost savings to the household’s annual energy bill
• how the energy efficiency and carbon emission ratings of the property will change.

In addition, an EPC must also convey several other key pieces of information:

Reference information - This includes the type of property (e.g. house, flat), the unique reference number (as stored in the central register) and date of the certificate.

Estimated energy use - An estimate of the current and potential energy use, carbon emissions and fuel costs for lighting, heating and hot water.

Energy assessor details - This includes the assessor’s name, accreditation number, company name (or trading name if self employed) and contact details.

Complaints - The certificate will list details of how to complain about a certificate, or check its authenticity.

Energy advice - The certificate provides basic advice about being more energy efficient.

Click here for an example of an EPC.

How is the energy efficiency rating calculated?

Each EPC rating is graded on the same factors, so you can compare the energy efficiency of similar properties.

Ratings are based on the performance of the building itself and its services, such as the heating and lighting, rather than the domestic appliances within it.

The ratings will vary according to the age, location, size and condition of the property. The potential rating on the certificate will take these factors into account, and the suggested recommendations for improving ratings will be tailored so that they are realistic for each specific building.

How do I get an Energy Performance Certificate?

You can only get an EPC by having an accredited Domestic Energy Assessor survey your property. Accredited energy assessors may be employed through a company (such as an estate agent or an energy company), or they can be independent traders. You should always check they operate as part of an accreditation scheme, as this ensures your energy assessor is operating to professional standards.

The price of an EPC is set by the accredited organisations which issue them, but if you’re a landlord applying for an EPC then the cost for an average house is about £100.

Getting an EPC for an average sized home doesn’t take too long, normally the same amount of time as a house valuation report which has to be prepared when a property is put up for sale. However the exact time will vary from property to property.

What are the advantages of an EPC?

The information in an EPC can be very useful, not just for landlords and people buying a property, but also if you want to find out how you can improve the energy rating of your home, and save money on bills.

An EPC can help:

• cut your fuel bills
• improve energy performance in your home
• help cut carbon emissions

You are not legally required to act on the recommendations contained in the recommendation report, but if you decide to, then it could make your property more attractive for sale or rent by making it more energy efficient. Or help lower your bills.

What else can you do to cut down your energy bills?

There are many ways in which to cut down your energy consumption, and lower your household’s gas and electricity bills.

Firstly you should ensure you are on the tariff that offers you the best value for money, which may mean switching suppliers. Use our online comparison tool to compare prices and find a better deal that suits you.

If you are worried about estimated bills then make sure you give your supplier an up-to-date meter reading, and sign up to an online account to guarantee your bills are accurate.

If you don’t already pay by Direct Debit, you should consider paying this way, as energy suppliers offer a discount for paying in this way. For more ways to reduce your bills, read these articles:

Energy switching tips >>>

How to save money on your energy bills >>>

Reduce your energy bills >>>

Switch energy tariff and save money >>>

I hope this helps answer your question Gregory!

* According to public services website Directgov

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