What EPC do I need to create a tenancy?
To create a tenancy in England and Wales, the property must have a valid Energy Performance Certificate (EPC) with a minimum energy efficiency rating of E. Here are the key details:
- Minimum rating of E: Since April 1, 2020, it's illegal to rent out a property with an EPC rating below E (i.e., F or G) unless a valid exemption is registered.
- Providing the EPC: A copy of the EPC must be provided to prospective tenants when they view the property and must be given to them at the start of the tenancy. Failure to do so can invalidate a Section 21 eviction notice.
-
Exemptions: There are some exemptions for properties that cannot be improved to meet the minimum rating. These must be registered on the PRS Exemptions Register. Examples include:
- High cost exemption: Where the improvements would cost more than £3,500.
- All improvements made exemption: If all possible improvements have been made but the property still falls below an E rating.
- Duration: An EPC is valid for 10 years.
- Fines: Landlords can be fined up to £5,000 for failing to meet EPC requirements.
This regulation applies to new tenancies as well as renewals. Therefore, it is essential to ensure that the property meets these standards before renting it out.
When creating a tenancy on the Portfolio platform, the system will automatically retrieve the EPC for your property. However, please ensure that the certificate is correct and valid before proceeding with your agreement.
For room only assured shorthold tenancies - 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 a EPC if sold or rented out.
Related links -
Last reviewed 18th December 2024