The minimum energy efficiency standard is the rule that stops a property being let if it is too inefficient. It applies to most privately rented homes in England and Wales, and it is enforced by local authorities.
The short version
E or better to let, with registered exemptions for genuine cases. Penalties are civil and can be substantial. A C minimum has been proposed for 2030, so treat anything below C as work you will do eventually.
The standard as it applies today
A landlord generally may not grant a new tenancy of, or continue to let, a domestic property with an EPC rating of F or G, unless a valid exemption is registered. The rule bit in stages: first for new tenancies, then for all existing ones. In practice, if you are letting a property today it needs to be E or better or carry an exemption.
Exemptions, and how they really work
Exemptions exist, but they are not a way of opting out. Each one has to be registered on the national PRS Exemptions Register with evidence, and most last five years rather than indefinitely. The common grounds are:
- All relevant improvements made and the property is still below the standard.
- A cost cap has been reached — the landlord has spent the capped amount on improvements without achieving the standard.
- Consent refused: the tenant, a lender or the freeholder has refused permission for the works.
- A devaluation report from an independent surveyor shows the measures would reduce the property's value by more than a set percentage.
- Wall insulation would negatively affect the fabric of the property, evidenced by an appropriate expert.
Note the last two: they need a professional report, not an opinion. And an unregistered exemption is not an exemption at all, however good the reason.
What happens if you get it wrong
Enforcement sits with the local authority, which can serve a compliance notice and impose civil penalties. Penalties are set by breach type and by how long the property has been let in breach, and they can run to five figures per property. There is also a publication element: authorities may publish details of the breach on the register.
The practical order of work
- Check the register for every property you own. It is free and takes a few minutes each.
- List anything below E. Those are urgent.
- List anything at D or E. Those are your 2030 problem if the proposed C threshold arrives, and they are far cheaper to fix at a void than in a hurry.
- Read the recommendations already on each certificate. They are free advice you have already paid for.
- Plan the cheap fabric and controls work into void periods rather than treating it as a separate project.
If you are already having us in for a mid-term inspection, the state of the loft, the heating controls and the glazing are things we can note in passing, so you are not guessing about what a future assessment would find.
Written by The Surveyor Co, a trading name of LW Renovation Group Ltd, Lincoln. This guide describes how records are written and read; it is not legal advice. Where a deposit scheme, lease or insurer sets a rule, that rule wins.