What is an EPC?

model house epc

EPC is an abbreviation of Energy Performance Certificate.

The EPC assesses the energy efficiency of a property on a scale of A-G. Landlords must obtain an EPC every 10 years. Currently landlords cannot let rental properties unless the rating is an E. There had been plans to require rental properties to have an EPC rating of C or better, but these rules were abandoned by Rishi Sunak in September 2023.

The EPC includes estimated energy costs, as well as a summary of the property’s energy performance-related features. It also include recommendations on measures that would make the property more energy-efficient.

The full EPC report is essential reading before buying a rental property, as upgrading the energy efficiency of a property is costly. I include an estimate of these costs in my refurbishment budget when I buy a new rental property. I also add the to the price of the house when calculating the yield.

EPC Checker – this is a fantastic resource. You can search the official gov.uk EPC register for free for any property in the UK, and study the recommended improvements. I look up the reports for every property I view so I can see how difficult it will be for the property to achieve a C rating. Sometimes the reports are out of date, and some improvements may already be complete.

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EPC graph showing the energy efficiency of a property in the UK, with the title What does EPC mean and why it's important for landlords
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