Landlords will need a new EPC for EVERY new tenancy

Private landlords in England and Wales will need to obtain Energy Performance Certificates (EPCs) every time they rent to a new tenant, the government proposes.

And landlords of HMOs will need a new EPC every time they rent out a ROOM to a new tenant.

The consultation published by the government has a deadline of 26 February for landlords to respond.

Currently, EPCs are valid for 10 years but the proposed changes aim to reduce the validity period to ensure EPCs are updated more often to reflect building upgrades and improvements.

The government says this will provide more current and relevant information for prospective tenants and policymakers.

HMO EPC is needed when a room is rented out

The potential reforms suggest that an EPC should be required for an entire House in Multiple Occupation (HMO) when a single room within it is rented out.

This change aims, the government claims, to ensure that all rental properties meet the necessary energy performance standards, regardless of how they are rented.

The proposal states: “We are proposing to extend the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) when a single room within it is rented out, as currently the guidance states that an EPC is not required in this instance, only when the whole house is rented out.”

The government clarifies the rules for HMOs with this statement: “Mandating EPCs for HMOs when a single room is rented out will ensure that HMOs will need to comply with the requirements set out in the MEES Regulations if they did not have a valid EPC before this point.

“This would provide consistency across the private rented sector.”

HMO landlords might be relieved to learn that the government is proposing a ’24-month transitional period’ to obtain a valid EPC.

‘Greatly impact PRS landlords’

The proposal goes on to state: “Given the more frequent turnover in the PRS, a reduced validity period would more greatly impact PRS landlords.

“There may be an information benefit for prospective PRS tenants and policymakers for more current EPCs, and landlords may be able to capture upgrades to their properties more easily, in turn potentially improving desirability in the market and aiding compliance with regulations such as MEES.

“However, landlords may also incur a very small increase in costs from more regular EPCs.”

Upgrading five million homes

The proposal also states that the government is committed to upgrading five million homes by the end of this parliament.

While the average tenancy length in the PRS is 4.3 years, which is below the current EPC validity period of 10 years, the average tenancy length in the Social Rented Sector (SRS) is 12.2 years.

This means many long-term tenants in both sectors live in properties without a valid EPC.

Also, tenants with shorter tenancies could find their EPC expiring while still living in the property.

The government wants to have a valid EPC throughout the tenancy, rather than only at the point of marketing to ensure that landlords and tenants have access to accurate and up-to-date information.

This could also help, it claims, improve compliance with government policies and commitments, such as the Minimum Energy Efficiency Standards (MEES).

Concerned landlords can read the ‘Reforms to the Energy Performance of Buildings regime’ on the .gov website.

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