What is an EPC?

An EPC contains:

• An energy efficiency rating (A-G).
• An environmental impact rating (CO2 emissions).
• Estimated energy costs for heating, hot water, and lighting.
• Recommendations on how to improve the property's energy efficiency, along with estimated costs and potential savings.

An EPC is valid for 10 years. If significant energy efficiency improvements are made within that period, you may wish to obtain a new EPC to reflect the higher rating and potentially enhance the property's appeal.

When is an EPC Required?

As a landlord in Wales, you must have a valid EPC for your property:

• Before marketing the property for rent: The EPC must be available to potential Contract Holders at the earliest opportunity.
• Before a new occupation contract is signed: A copy of the EPC must be provided to the Contract Holders.
• Every 10 years: Even if the property remains continuously let, a new EPC is required if the existing one expires and you intend to re-let or sell the property.

EPCs are not required for certain types of properties, such as some holiday lets, temporary buildings, or listed buildings where compliance would unacceptably alter their character.

EPC Rating and Minimum Standards (MEES in Wales)

Since April 1, 2020, under the Minimum Energy Efficiency Standards (MEES) Regulations, it has been unlawful for landlords in England and Wales to let or continue to let a domestic property with an EPC rating of F or G, unless a valid exemption is registered.

Current Requirement:

• All privately rented properties in Wales must have an EPC rating of at least Band E.

Future Proposals for Wales:

If your property has an EPC rating of F or G, you must make improvements to bring it up to at least an E rating, or register a valid exemption on the Private Rented Sector Exemptions Register. There is a cost cap of £3,500 (including VAT) for improvements. If you spend this amount and the property still doesn't reach an E rating, or if no improvements can be made for £3,500 or less, you may be eligible to register an "all improvements made" or "high cost" exemption.

How to Obtain an EPC

To get an EPC for your property, you need to appoint a qualified and accredited Domestic Energy Assessor (DEA). The assessor will visit your property to:

• Inspect key elements such as the property's construction, age, heating system, insulation levels, windows, and lighting.
• Gather data, which is then input into an approved software program.
• Generate the EPC and lodge it on the central EPC register.

You can find an accredited energy assessor through various online directories or by searching on the official GOV.UK website.

Consequences of Non-Compliance

Failure to comply with EPC regulations can result in:

• Financial Penalties: Local authorities can issue fines of up to £5,000 for failing to provide a valid EPC when required or for letting a property that does not meet the minimum energy efficiency standard (Band E) without a valid exemption.
• Marketing Restrictions: You may be unable to legally market your property for rent through an agent.
• Inability to Seek Possession: Under the Renting Homes (Wales) Act 2016, failure to meet the FFHH (Fitness for Human Habitation) duty, which includes the requirement for a property to be energy efficient, can impact a landlord's ability to serve a 'no-fault' (Section 173) possession notice.
• Reputational Damage: Non-compliance can harm your reputation as a responsible landlord.

Benefits of a Good EPC Rating

Improving your property's EPC rating offers several advantages:

• Attracts Contract Holders: Properties with higher EPC ratings are more attractive due to lower energy bills, making them more desirable in the rental market.
• Reduced Void Periods: Energy-efficient homes often rent faster and have fewer vacant periods.
• Increased Property Value: Energy efficiency improvements can increase the overall value of your property.
• Reduced Maintenance: Better insulation and modern heating systems can lead to fewer issues like damp and condensation.
• Contribution to Net Zero: You contribute to Wales' and the UK's wider climate change targets.
• Access to Funding: Some grants or schemes (like the Welsh Government's Nest Scheme or ECO schemes) are available to help with energy efficiency improvements.