EPC Regulations for Landlords in Wales

Anyone considering renting out property in the North Wales areas of in Llangefni, Bangor, Holyhead, Gwynedd and Anglesey needs to know about energy performance certificates (EPCs) for landlords.

A legal requirement before you rent out property in England and Wales, EPCs ensure your tenants (contract holders) have the right information about how energy efficient the property is – and consequently, how warm, cosy and expensive to heat.

Earlier this year, UK Prime Minister Rishi Sunak scrapped targets, which would have placed a requirement on landlords to achieve a certain energy efficiency standard by 2025.

While this may have taken the pressure off some landlords with properties in need of improvement, it doesn’t mean the issue has gone away. There are still standards to meet and plenty of good reasons to prioritise energy efficiency in your rental home.

What is an EPC for landlords?

An energy performance certificate (EPC) is a document which sets out how energy efficient a property is. To get an EPC, your home must be assessed by an accredited inspector who will give it a rating from A to G – with A being most efficient. The EPC report contains the property’s energy use and typical energy cost along with recommendations for reducing energy use.

The assessors will inspect the property’s:

• Exterior walls
• Roof insulation
• Floor
• Windows
• Open fireplaces
• Boiler
• Lighting
• Heating system
• Heating controls
• Hot water cylinder insulation
• Ventilation system
• Conservatory and extensions.

What are the current EPC requirements for landlords?

To market your property for rent or sale you must have a valid EPC – they last for 10 years. In England and Wales, rental properties must achieve at least an E rating to comply with the law. This is called the Minimum Energy Efficiency Standards (MEES), which came into force on 1 April 2018 for new tenancies, and on 1 April 2020 for existing tenancies/contracts.

Are the EPC rules for landlords changing?

As part of UK government plans to reach net zero emissions by 2050, a target was introduced for all rental properties to have a C rating by 2025. This target was scrapped by the government in September 2023. While this means no changes for landlords at present, the position may be revised in future, whether or not there is a change of government. Regardless of targets, achieving the best rating for your property is still a good idea for the environment and to make it more attractive for tenants.

What if my property does not meet minimum standards in Wales?

If your property doesn’t reach the current E rating, you will need to take action to improve its energy efficiency. Start by looking at your EPC report, which will include things you can do to improve your rating. These could be upgrading the boiler, adding double glazing or installing loft insulation as well as simple measures like draught excluders or LED lightbulbs.

For landlords who need to make improvements, there is a cost cap, meaning you shouldn’t need to spend more than £3,500. Find out about grants and sources of funding that can help on the gov.uk website.

The Green Deal helps you make energy-saving improvements to your home and to find the best way to pay for them.

If your tenant receives certain benefits your property may be eligible for improvements at no cost through the Welsh Government’s Nest scheme

If it would cost more than £3,500 to improve your property to the required standard, and you are not able to secure grants to help with the cost, you are able to register an exemption. Read more on the gov.uk website.

Why is it worth making energy efficiency improvements?

Even if your property meets the required rating, it is still worth investing in energy efficiency improvements. With the high cost of energy and pressure on the cost of living, tenants (contract holders) are increasingly looking for homes which are warm, easy to heat and with lower bills. Better insulation and heating can also reduce the risk of condensation and damp which can be a major health issue for your tenants.

If you decide to sell the property in future, it may be an advantage to have a decent EPC rating to attract buyers. Plus, the climate crisis hasn’t gone away and although targets have been shelved for now, there is no guarantee they won’t return in future.

If you’re looking to rent out property in Anglesey or Gwynedd in North Wales, we can help you with the rules, regulations and obligations that come with being a landlord – including energy performance certificates. Contact us today.