Minimum energy efficiency standard: EPC band E or a registered exemption

Domestic private rented property let on an assured tenancy, a regulated tenancy or a domestic agricultural tenancy that is legally required to have an EPC. Company lets and lodger arrangements are not these tenancy types and fall outside the regulations.

Do not let or continue to let a property with an EPC rating below E (F or G) unless an exemption applies and is registered on the PRS Exemptions Register. Improve the property to E, spending up to £3,500 including VAT (spend since 1 October 2017 counts, third-party funding can be used). If E cannot be reached within the cap, install all measures possible within it and register an exemption. Main exemptions: all relevant improvements made, high cost (cheapest measure over £3,500), wall insulation, consent not obtained, devaluation over 5%, and a 6-month new-landlord exemption. Most exemptions last 5 years.

Deadline

Ongoing

Applies to new tenancies since 1 April 2018 and to all existing tenancies since 1 April 2020. Exemptions generally expire after 5 years and must then be reviewed.

• Valid EPC rated A to E
• PRS Exemptions Register entry and supporting evidence (quotes, expert reports, consent refusals)

Civil penalty

Up to £5,000

Other consequences

Local authority compliance notice; financial penalty up to £2,000 (breach under 3 months) or £4,000 (3 months or more), up to £1,000 for false or misleading register information, up to £2,000 for failing to comply with a compliance notice, maximum £5,000 per property in total, plus publication of the breach on the register for at least 12 months.

• Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (SI 2015/962), reg 23legislation.gov.uk
• SI 2015/962, reg 40 (penalties)legislation.gov.uk

Official guidance

The E standard continues to apply until the higher standard takes effect (see mees-epc-c-2030).

• Commission an EPC before marketing a property to letIn force since 9 January 2013Fine up to £200

  Before a property is advertised to let you must have a valid Energy Performance Certificate or have commissioned one, and state the energy rating in adverts.

• Give the EPC to prospective tenants and the tenantIn force since 9 January 2013Fine up to £200

  Show a valid EPC free of charge to anyone interested in renting at the earliest opportunity, and make sure the person who becomes the tenant has been given a copy.

• Higher minimum energy efficiency standard: EPC C by 1 October 2030Not yet in force: confirmed from 1 October 2030Fine up to £30,000

  The government has confirmed that all privately rented homes in scope must reach EPC C, measured on new EPC metrics, by 1 October 2030, with a £10,000 cost cap. The regulations to implement this have not yet been laid.

• Give the tenant a valid EPC (cross-reference)In force

  Make a valid Energy Performance Certificate available free to prospective tenants and make sure the person who becomes the tenant has been given it.