What Are My Obligations Under the EPC Regulations?
Landlords across England and Wales are increasingly asking: What are my obligations under the EPC regulations?
With tightening energy performance requirements, financial penalties, and mounting tenant awareness, it’s no longer enough to view EPCs (Energy Performance Certificates) as an administrative box to tick.
Whether you’re leasing out a residential flat or managing a portfolio of commercial buildings, EPC compliance is no longer optional—it’s legally binding. It could directly impact your ability to generate rental income.
Understanding EPC and MEES Basics
Before we dive deeper, let’s clarify the basics.
An EPC (Energy Performance Certificate) rates a property’s energy efficiency from A (most efficient) to G (least efficient) and is valid for 10 years. It’s required when a building is constructed, sold, or rented.
More crucially, the government’s Minimum Energy Efficiency Standards (MEES) now enforce that most properties being let must achieve a minimum EPC rating.
This leads us to the most frequently asked question:
What are my obligations under the EPC regulations?
The answer lies within MEES and the current legislative landscape.
MEES Explained: The Legal Minimum
Since April 2018, landlords have been prohibited from granting new tenancies—or renewing existing ones—on residential or commercial properties with an EPC rating below “E”.
In April 2020, this rule was extended to cover all existing residential tenancies, and in April 2023, the rule was extended to all non-domestic properties under ongoing tenancies.
So, to repeat the catch phrase again: What are my obligations under the EPC regulations?—You must not let out any property rated F or G unless an exemption has been formally registered.
Failure to comply can result in hefty fines:
- Up to £5,000 for domestic properties
- Up to £150,000 for commercial buildings (depending on the rateable value)
Can I Let or Renew a Lease on a Property Rated Below E?
In most cases: No.
Letting or renewing a lease on a substandard property (EPC rating F or G) is unlawful, unless:
- A valid exemption has been registered.
- The property is not legally required to have an EPC (some listed buildings or short-term lettings).
- Or, the EPC itself is out of date or doesn’t yet exist (in which case, you may be in breach of other EPC duties anyway).
This is why the question What are my obligations under the EPC regulations? Must be asked before listing or renewing a tenancy.
Mandatory Improvements to Meet EPC Obligations
If your property falls below an E rating, you may be required to make energy efficiency improvements. These typically include:
- Installing cavity wall insulation
- Upgrading single glazing to double glazing
- Improving boiler efficiency or switching to low-carbon heating
- Adding loft insulation
- Installing draught-proofing and thermostatic radiator valves
In short, landlords must take “relevant energy efficiency improvements” that are:
- Technically suitable;
- Cost-effective (within a £3,500 cap for residential property);
- Not subject to tenant refusal or legal constraints (e.g., planning consent issues).
You may not need to pay upfront in all cases. Green Deal finance and other government incentives may apply. However, the obligation remains on you to ensure the property reaches the minimum standard, or to register a valid exemption.
So once again: What are my obligations under the EPC regulations? You must either bring your property up to an E rating or demonstrate a lawful reason why you cannot.
Registering an Exemption
If you cannot meet the minimum rating despite reasonable attempts, you may register an exemption on the PRS Exemptions Register. Common exemption categories include:
High-cost exemption – All relevant improvements would cost over £3,500 (residential) or not meet payback thresholds (commercial);
All improvements made – You’ve done everything possible, but the property still doesn’t meet an E rating.
Third-party consent exemption – Tenants, freeholders, or planning bodies have refused necessary works;
Devaluation exemption – Works would reduce the property’s market value by 5% or more;
Temporary exemption – For new landlords, lasting 6 months only.
These exemptions typically last five years, but you must keep detailed records to support your claim. If an exemption lapses, you must either improve the property or reapply.
Ask yourself: What are my obligations under the EPC regulations? If the answer involves an exemption, ensure it’s properly documented and registered—guesswork won’t stand up to inspection.
Commercial Properties: Are the Rules the Same?
While the same MEES rules apply, commercial properties involve different thresholds and penalties. The cost-effectiveness test uses a 7-year payback rule, and local trading standards often enforce it.
Landlords often ask: Can I let or renew a lease on a commercial property rated below E?
Again, the answer is generally no, unless:
- A valid exemption applies.
- The EPC rating is being reassessed due to works.
- Or, the lease is too short (under 6 months) or too long (over 99 years), in which case MEES may not apply.
Failing to comply with high-value commercial assets could result in enforcement notices, reputational damage, or difficulties in lease negotiations.
So remember: What are my obligations under the EPC regulations?—The rules are strict, and ignorance is not a defence.
Future Changes: Minimum Rating Likely to Rise
The UK government has consulted on raising the minimum EPC requirement for commercial buildings to C by 2027 and B by 2030. Residential rules are expected to follow a similar path.
Although these changes are not yet law, the message is clear: Energy performance standards are tightening, and landlords should act early to avoid future non-compliance.
Planning renovations now to achieve a B or C rating is not just forward-thinking—it’s financially prudent.
Ask again: What are my obligations under the EPC regulations? They’re not only current, but evolving.
Why Tenants Are Paying Attention
Today’s tenants—both residential and commercial—are more energy-conscious. Properties with poor EPC ratings are often viewed as:
- Expensive to run.
- Poorly maintained.
- Less comfortable or healthy to occupy.
A higher EPC rating can mean:
- Increased rental demand;
- Shorter void periods;
- Lower tenant turnover;
- Improved sale value.
What are my obligations under the EPC regulations? This is no longer just a legal question—it’s a strategic one.
Enforcement and Penalties
Non-compliance can result in:
- Fixed penalties for each breach (up to £5,000 for homes, or up to £150,000 for commercial property);
- Public naming and shaming via enforcement notices;
- Invalidation of lease renewals;
- Legal disputes with tenants over unlawful lettings.
Enforcement is managed by local authorities, but is increasingly supported by central databases, making it easier for councils to detect and respond to breaches.
The final reminder: What are my obligations under the EPC regulations? Take them seriously. The cost of doing nothing may far exceed the cost of compliance.
FAQs
What happens if my property has an EPC rating of F or G?
You cannot legally let or renew a tenancy unless you improve the rating to E or higher, or register a valid exemption.
Are listed buildings exempt from EPC requirements?
Not automatically. You must prove that energy improvements would unacceptably alter the property’s character. Otherwise, the standard rules apply.
How long do EPCs last?
EPCs are valid for 10 years. However, if you make significant improvements, getting a new EPC early is wise.
Do I need a new EPC every time I let a property?
No, as long as the existing EPC is valid. However, if the property is upgraded or the EPC is close to expiry, updating it is best practice.
What is the maximum I must spend to comply?
The cap for residential properties is £3,500, including VAT. Commercial rules depend on a 7-year payback test rather than a specific cap.
What is the PRS Exemptions Register?
It’s the official government platform where landlords must register valid EPC-related exemptions. You must provide evidence and keep records.
Do MEES apply to commercial properties as well?
Yes, MEES apply to both domestic and non-domestic rented buildings unless specifically excluded by law.
Can I be fined if I didn’t know my EPC was out of date or below E?
Yes. Landlords are expected to check and comply proactively. Lack of knowledge is not a defence.
What EPC rating will I need in future years?
For many property types, it is likely to rise to C by 2027 and possibly B by 2030. Planning ahead is advised.
What if I buy a tenanted property with a sub-E EPC?
You may benefit from a temporary 6-month exemption, but must then comply with MEES or register another valid exemption.
Final Thoughts
As building energy efficiency becomes central to environmental policy, rental profitability, and tenant demand, EPC compliance is no longer a secondary consideration.
Landlords must keep asking: What are my obligations under the EPC regulations?
The answer will shape not just your compliance status—but your investment returns for years to come. Act now, audit your properties, and take control before enforcement officers or disinterested tenants decide for you.
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