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Private landlords may have to update their energy performance certificates more often so renters have more accurate data about their homes.
An EPC is valid for 10 years and must be produced when a home is rented to a new tenant or sold.
Under the new measure, a new trigger point is planned for when the current tenancy agreement ends, similar to other requirements like providing an electrical installation report or gas safety certificate.
A consultation document also suggests that an entire house in multiple occupancy (HMO) needs a new EPC when a single room has a new tenant rather than when the whole house is rented.
The change aims to provide tenants, landlords, and the government with better information about a home’s energy performance, supporting efforts to cut carbon emissions, tackle fuel poverty, and improve housing standards.
The government also hopes that more frequent EPC data will help landlords plan energy performance upgrades that will improve a property’s desirability for tenants and ensure compliance with Minimum Energy Efficiency Standards (MEES).
EPCs were introduced in 2007 to improve energy efficiency, reduce carbon emissions and lessen the impact of climate change in homes and other buildings.
Private rented homes must have a rating of E or above or may not be let to tenants.
It is proposed that private rented homes must rate C or above in the future to be let to tenants.
Landlords who do not meet the minimum EPC rating face fines of up to £5,000 and must pay up to £200 per property for failing to produce a current EPC when requested.
Landlords can only issue a Section 21 no-fault eviction notice if they provide the tenant with a valid EPC.
According to government data, 46 percent of rental properties need between £5,000 and £10,000 spent on upgrades to achieve an EPC rating of A, B, or C. Another 20 percent need between £10,000 and £15,000.
The average expected energy performance spend is expected to be £7,500 per property.
Experts calculate landlords face a £21.4 billion bill for upgrading the 2.7 million privately rented homes with an EPC rating of D or less.
Landlords can upgrade a property’s EPC rating in several ways:
Little funding is available for EPC improvements. The Warm Homes Local Grant scheme offers up to £15,000 a home, with 100 percent for the first property and 50 percent for any additional properties in the portfolio.
Other conditions apply, such as the tenants must be a low-income household claiming certain benefits and living in an eligible postcode.
Find out more about the consultation, which ends on February 26, 2025.