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New EPC Minimum Energy Rating – C

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Current EPC Legislation

Since October 2008, all domestic rental properties in England and Wales have required an Energy Performance Certificate (EPC). Visit our What Is An EPC? page to find out how an EPC is produced and what it includes. The key information in an EPC is a properties Energy Efficiency which is rated on a scale of A to G, A being the highest rating and G being the lowest. There have been two key amendments to the legislation since it began.

  • From 1st April 2018 Minimum Energy Efficiency Standards (MEES) came into force. This required all new tenancies to have a minimum EPC rating of ‘E’ or above.
  • From 1st April 2020 the Minimum Energy Efficiency Standards were applied to all tenancies, new and existing.

So, it is currently illegal to let, or market any property for letting, if it does not have a valid EPC with an Energy Rating of ‘E’ or above. 

Landlords and Agents can face financial penalties if they let a property, or market a property for let in any way and there is no valid EPC or the Energy Efficiency Rating on the EPC is F or G. Fines currently start at £200 for an individual property and this can increase depending on the circumstances e.g. the number of properties owned or managed that are in breach of the legislation and the length of time that they have been in breach. Fines are issued by Trading Standards without the need for court proceedings and finding any breach in legislation could open the door to further scrutiny.

There is a 'spend cap' on what the government expects a landlord to spend to make the improvements required to bring their property to within the minimum standards. This cap is currently £3,500 inc Vat. If the landlord can demonstrate that they have spent this amount but the EPC is still below the minimum E rating, the landlord can apply for an exemption which will allow them to let the property despite the rating. Exemptions only last for 5 years at which point the landlord would have re-apply for an exemption if one is still needed. Find out more on our Exemptions Tab.

Just over 5% of valid EPCs have a rating of F or G. This puts them below the minimum rating required for rental. A much larger percentage of EPCs have expired and are therefore invalid. There were over 40 thousand EPCs lodged in Brighton & Hove from 2008 to 2012. They have now all expired and many of them have not been renewed despite the fact the properties are still being let.

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EPC Exemptions

There are circumstances where a landlord can seek an exemption from the EPC minimum standards requirement. All exemptions must be registered on the national PRS Exemptions Register (PRS meaning 'private rented sector'). The Trading Standards department of the local authority monitors and processes all exemption requests. The Department for Business, Energy and Industrial Strategy (BEIS) also monitors the exemption register to gauge the impact of the legislation. Exemptions usually last for 5 years at which point the landlord would need to re-register.

In order to register, landlords will need to have the full address details of the, which exemptions are to be registered and a valid EPC for the property. Depending on the exemption sought, landlords may need to provide written evidence or reports from appropriate sources, such as an architect, chartered engineer or surveyor, that support the reason for the exemption. If a property is sold all exemptions are ended and a new owner would need to reapply.

Examples of where an exemption might apply

  • When a property is below the minimum rating and there are no recommendations for improvements on an EPC
  • When all recommendations on an EPC have been completed but the property remains below the current minimum standard required for rental properties
  • When the cost of the recommendations on an EPC are in excess of the current spending cap (evidence must be provided, with three separate quotes showing the cost to be over the cap)
  • If the landlord has obtained expert advice in writing that states that recommended improvements are not appropriate as they could have a negative impact on the fabric or structure of the property, or the building if the property forms part of a larger building
  • If third-party consent is required before improvements can be made. Landlords must make reasonable attempts to obtain consent.
  • If the landlord can demonstrate that recommended improvements will reduce the market value of the property by more than 5%. This would require a report produced by a valuer who is RICS registered (Royal Institute of Chartered Surveyors).
  • If the landlord can demonstrate there have been changes to a lease, or ownership of a property. For example if a landlord purchases an interest in a property that is already below minimum standards, or a new lease has been created or granted as a result of a court order or some other legal requirement. This exemption would last for 6 months.
  • If the property is listed and the recommendations on an EPC would unacceptably alter it or if they contravene listed building regulations.
    • The chart below shows the % of existing domestic properties by Energy Rating, from EPCs generated from 2008 to 2021 in the Brighton & Hove local authority. This is public access data available at www.gov.uk, table EB1.

    Brighton & Hove All EPC Stats Chart