Energy Performance Certificates (EPC)

Since 1 October 2008, landlords have been required to make an Energy Performance Certificate (EPC) available to prospective tenants when a property is being advertised for sale or let. The purpose of the EPC is to show prospective tenants the energy performance of the dwelling they are considering renting.

The certificates show the energy efficiency rating, compare the home's energy performance-related features with average ratings, and draw specific attention to the 'Green Deal' (see later).

An energy performance certificate and accompanying recommendation report last for ten years unless another EPC has been produced within that time, in which case only the latest one is valid.

Before advertising, a landlord must commission an EPC and use all reasonable efforts to ensure an energy performance certificate is obtained within seven days of marketing. If it is impossible to get the EPC within seven days, an additional 21 days is allowed. However, these extra 21 days are only granted if all reasonable efforts were made to obtain the EPC in the first seven days.

The energy performance indicator shown in the energy performance certificate must be displayed in any advertisement on the internet, in newspapers, magazines, written particulars, or any other ad. The advertisement should include either the numerical score or the letter representing the energy usage as shown on the EPC.

The EPC rating must be E or better unless the property is exempt — see the next section, "Energy Efficiency Improvements," for more information.

The EPC must be available to prospective tenants, free of charge, before they are given written details, arrange a viewing, or agree on a letting. The EPC does not have to be given at this stage; it just needs to be available if they ask. A copy of the EPC is acceptable.

The actual tenant who takes the property must have been given, free of charge, a full copy of the EPC, including the assessor's recommendation report.

Breaking the EPC rules can result in a £200 fixed penalty notice from Trading Standards.

EPCs are completed by registered Domestic Energy Assessors (DEAs). An assessor can be found here.

Further information is available on the GOV.UK website.

Although the EPC may suggest several improvements that could be made, there is no legal obligation to undertake any of these works. However, it is advisable to discuss with prospective tenants which (if any) of the energy-saving recommendations might be carried out or might already have been completed. The landlord or agent may avoid complaints by being transparent and managing the tenant's expectations.

Serving this document

• Serve the EPC in line with the service clause in your tenancy agreement—normally by first-class post to the property, hand delivery, or (if the contract allows) email.
• Always put all tenants' names on the heading and envelope, and keep a certificate of posting or a photograph of hand-delivery.
• Joint tenants: Shelter's professional guidance confirms that one copy, in a single communication addressed to all joint tenants (or a nominated lead tenant), is "arguably sufficient" for statutory documents such as deposit prescribed information. The same practical approach may be accepted for all documents connected with the tenancy, provided each tenant is named in the document. However, despite this, giving each named joint tenant a duplicate copy is ideal.
• Where the document is to be given before occupation or at the start of the tenancy, attach it to the digital signing tenancy pack and email it to every tenant so there is no dispute about receipt.

For fuller details on service rules, see our Service of Notices guide.

Exemptions to having an EPC

There is often confusion over exemptions from having to obtain an EPC. These are frequently mixed up with exemptions from complying with the minimum "E" rating.

An EPC is required on a self-contained building. A building means "a roofed construction having walls, for which energy is used to condition the indoor climate". The requirement for an EPC is only triggered when the property is to be marketed for sale or rent. Marketing for rent does not include a renewal where the landlord, tenant, and property remain the same.

Listed Buildings

Government guidance confirms:

There is a common misunderstanding regarding listed buildings and whether they are exempt from the legal requirement to obtain an EPC. Listed properties, and buildings within a conservation area, will not necessarily be exempt from the requirement to have an EPC when they are sold or let, and it will be up to the owner of a listed building to understand whether or not their particular property is required to have one. ...

As a general rule, a listed building will require an EPC when it is marketed for rent. However, if it does not meet the minimum "E" rating, an exemption may apply if carrying out works to improve its efficiency is not possible due to the restrictions imposed by its listed status.

HMOs and shared rooms

An EPC is required if a whole house or flat is let to sharers on only one contract.

When letting individual rooms, the guidance relating to when an EPC is required states:

An EPC is not required for an individual room when rented out, as it is not a building or a building unit designed or altered for separate use. The whole building will require an EPC if sold or rented out.

However, a landlord cannot serve a no-reason possession notice if the contract-holder has not been given an EPC.

It is advisable to have an EPC done for the whole building and provide each room tenant with a copy of the EPC for the entire house when a new contract is granted. This avoids disputes over possession in court.

Furthermore, the accelerated possession claim form asks whether the contract-holder has been given an EPC—it does not include an option for "an EPC is not required". An explanation would need to be added if no EPC is provided.

Temporary buildings and demolition

The following are some of the main exemptions under the regulations:

• Temporary buildings with a planned time of use of two years or less.
• Residential buildings intended to be used for less than four months of the year, or where the owner or landlord could reasonably expect the energy consumption to be less than 25% of all-year-round use.
• Stand-alone buildings with a total useful floor area of less than 50m² (i.e., buildings entirely detached from any other building).
• A building is also exempt where the seller or landlord can demonstrate that:
  • the building is suitable for demolition;
  • the resulting site is suitable for redevelopment;
  • all relevant planning permissions, listed building consents, and conservation area consents exist in relation to the demolition; and
  • in relation to the redevelopment, either outline planning permission or full planning permission exists, and where relevant, listed building consents exist.
• Some holiday lettings may be exempt. Please see this guidance for more information.

Park Homes and Mobile Homes (Caravans)

The Government's official park-home guidance states:

"Park homes do not need an Energy Performance Certificate (EPC)."

• GOV.UK, Selling or giving away a park home

The guidance does not explain the reason for this exemption.

However, in law, most park homes and mobile homes fall within the definition of a "caravan" in the Caravan Sites and Control of Development Act 1960, section 29:

"'caravan' means any structure designed or adapted for human habitation which is capable of being moved from one place to another (whether by being towed, or by being transported on a motor vehicle or trailer) and any motor vehicle so designed or adapted, but does not include-

(a) any railway rolling stock which is for the time being on rails forming part of a railway system, or

(b) any tent."

Because the Energy Performance of Buildings (England and Wales) Regulations 2012 apply only to "buildings" (roofed constructions with walls for which energy is used to condition the indoor climate), and a caravan is not considered a building for these purposes, the widely accepted view is that caravans - including most park homes - are outside the EPC regime.

Important considerations:

• This legal interpretation (that caravans are exempt because they are not "buildings") is an inference based on the definition in the 1960 Act and the scope of the EPC regulations. It is not explicitly stated in the GOV.UK guidance.
• Classification can be fact-specific. In some situations, a mobile home may be treated as a "building" rather than a caravan (for example, if it is permanently sited, structurally altered, or integrated into the land). If there is any doubt, seek specific advice.
• An EPC may be obtained voluntarily, even if not legally required. Doing so can help avoid disputes over classification (particularly for section 21 possession) and improve transparency for tenants.

Section 21 Notices

A section 21 notice is the two months' "no-fault" notice that a landlord can serve where there is an assured shorthold tenancy. The notice is discussed in detail later.

For assured shorthold tenancies granted on or after 1 October 2015 (including renewals), the landlord may not serve a section 21 notice unless the tenant has first been provided with an EPC, where an EPC is legally required.