Energy advice for landlords

It is a legal requirement to have a valid energy performance certificate (EPC) when marketing a private rented property for letting or sale. 

Find out below what an EPC is and what the minimum energy efficiency standard is for rental properties.

About energy performance certificates

An EPC rates the energy efficiency and environmental impact of your property.  

It is rated on a scale from A to G where A is the most efficient and G the least efficient.

The certificate shows:

• the running costs for heating, hot water and lighting in the property   
• a list of recommended energy saving improvements

If you are unsure whether your property has a valid EPC the GOV.UK website has an EPC postcode search facility.

Why your tenant needs an EPC

Tenants need to know the energy efficiency of a property before signing a tenancy agreement.

Properties with higher energy efficiencies will be warmer and have lower running costs, leading to longer tenancies and more stable rental income.

Tenants spending less on fuel bills could also help keep down rent arrears.

Get an EPC

If you want to let a property but you do not have a valid EPC, you can get one from an accredited domestic energy assessor.

Find an assessor in your area (GOV.UK)

When the assessor visits your property you need to show them evidence of energy efficiency improvements such as building control competition certificates, installation conformity certificates, or date-stamped photos showing wall or floor insulation being installed.

The EPC will include recommendations for improving the energy efficiency of the property.

Minimum energy efficiency standard

Your property must have an EPC rating of E or above before you can grant a new tenancy to new or existing tenants.

GOV.UK has guidance for landlords on how to comply with the minimum energy efficiency standard for domestic private rented properties.

Check the guidance to: 

• find out if your property is covered by the regulations 
• when you need to take action to improve your property to EPC E

Exemptions

For private rented sector (PRS) properties with an EPC rating of F or G, there are a limited number of statutory exemptions.

You can read guidance on PRS exemptions on GOV.UK.

Landlords must carry out relevant works of up to £3,500 to bring rented properties up to standard if they do not meet the MEES. Relevant works are those recommended in the property’s EPC.

If the standard cannot be met within the £3,500 cap, landlords must carry out relevant works up to that value before registering an exemption.

The national PRS exemptions register is open to anyone who wishes to search for details of exempt properties.

Landlords must register an exemption if their property with an EPC rating of F or G qualifies.

You will need to:

• tell them the reason for the exemption 
• provide evidence of why the exemption applies

Entering false or misleading information on the national PRS exemptions register is an offence that can result in a financial penalty.

Improving your property’s energy performance

We encourage landlords to upgrade the energy efficiency of private rented properties to an EPC rating of C. 

This will provide your tenants with warmer, more comfortable homes and reduced fuel bills, and could help with your mortgage costs as some mortgage lenders offer preferential mortgage deals on properties with an EPC rating of A to C.

Having an energy efficient property also helps to combat the climate and nature emergency and any improvements you make will add to the value of your property when you come to sell.

Grants and loans

You can get advice from the Warm and Well service on grant and loan assistance to install energy saving measures for eligible households.

Warm and Well is a free energy efficiency advice for all households in South Gloucestershire. It is funded by us and 6 other neighbouring authorities, and managed by sustainability charity Severn Wye Energy Agency.

Visit the Warm and Well website for more information or find their latest activity report in the downloads section on this page.

You can apply for a loan through Lendology CIC to improve your property with energy efficiency measures and renewable technology installations. Lendology is a community interest company and an ethical lender. They can work with you to identify the best type of loan for your situation.

Further help

The government-endorsed simple energy advice website provides information to landlords about:

• legal obligations
• making your property more energy efficient
• grants and loans

The Energy Saving Trust website has information about making your property more energy efficient.

Trustmark has produced a free guide to retrofitting your home. They also have a search tool to find a specialist retrofit coordinator in your area.

Futureproof is a Bristol based organisation offering a range of services to help homeowners and landlords carry out energy saving home improvements.

Severn Wye energy agency offers:

• a link to energy installer network
• a fixed price survey to inspect private rented homes and issue an EPC

They have introduced an accelerator programme to help landlords wanting to improve the energy efficiency of their properties. This offers a free survey and an action plan to identify the right solutions. They will then guide you through the process of finding suppliers and getting the work done.

Find out more in Severn Wye’s Get ready for retrofit leaflet.

In most cases landlords will have to fund retrofit works either themselves of through their tenants. Lendology Loans are an option for these works.