Will My Rental Property Achieve EPC C?

The answer isn’t always obvious from the existing EPC.

Two properties with the same EPC rating can require very different improvements to reach Band C. One landlord may need only relatively modest changes, while another could be looking at more substantial work.

Before spending money, it therefore makes sense to establish how close the property is to EPC C and which improvements are actually likely to make the difference.

An EPC isn’t simply a letter from A to G. Behind the letter is a numerical rating from 1 to 100.

EPC Band C begins at 69 points.

That means a property rated D68 is only one point below Band C, whereas a property rated D55 needs an improvement of 14 points. Both are technically EPC D properties, but the work required to reach C could be completely different.

As a rough starting point:

These aren’t predictions of cost. The construction, heating, hot water, insulation and other characteristics of the property determine where the available EPC points can actually be found.

One of the biggest mistakes a landlord can make is treating the recommendations on an existing EPC as a shopping list.

An EPC may suggest improvements such as additional insulation, new windows, heating upgrades or renewable technologies. That doesn’t necessarily mean you need to undertake all of them – or that the most expensive recommendation represents the most sensible route to Band C.

The important question is:

We recently assessed a Victorian rental property where replacement windows appeared to be an obvious route to improving its energy performance. By looking more closely at the property and modelling the available options, we established that approximately £8,000 of window replacement could be avoided.

The objective shouldn’t simply be to improve everything that can be improved. For a landlord trying to reach a particular EPC rating, it should be to understand which improvements actually provide the EPC points required before committing to the expenditure.

Potentially.

Your existing EPC provides a useful starting point, but it may not necessarily represent how the property would be assessed today.

There are several reasons for this.

The property may have been improved since the EPC was produced. Insulation, heating, hot water or other elements may have changed. There may also be features of the building that weren’t evidenced or recorded during the previous assessment.

Older EPCs may also have been calculated using an earlier version of the assessment methodology.

This doesn’t mean that an existing EPC is wrong. It means that reviewing the existing certificate and the property itself can be worthwhile before making investment decisions based solely on its recommendations.

There isn’t one standard route to EPC C.

Depending on the property, potential improvements might include:

Where insulation is absent or limited, increasing it can be a relatively straightforward improvement.

Improved controls can sometimes provide useful EPC gains without replacing the complete heating system.

Where applicable, improving cylinder insulation can be a relatively inexpensive measure.

Usually simple and inexpensive, although lighting alone is unlikely to transform a poorly performing property.

Insulating solid or poorly insulated walls can have a significant effect, but it is also a substantial intervention and needs to be considered properly.

Replacing older glazing can improve energy performance, but replacing otherwise serviceable windows solely to obtain EPC points can be an expensive way of improving the rating.

Changing the heating system can substantially affect an EPC, but the result depends on the existing system, proposed replacement and characteristics of the property.

The key is not simply identifying measures that could improve the EPC. It is establishing which measures are appropriate and what effect they are likely to have on the actual rating.

Sometimes.

A property sitting at D67 or D68 may only require a relatively small improvement in its calculated performance.

At the other end of Band D, considerably more work could be required.

This is why the letter on the front of the EPC doesn’t tell you enough on its own.

For example, before replacing windows, insulating solid walls or changing a heating system, it can be useful to model the proposed improvement and see how many EPC points it is actually expected to produce.

If an £8,000 measure produces points that aren’t needed to achieve the objective, that is important information to have before, rather than after, the work has been carried out.

Older rental properties require particular care.

Solid-wall insulation can potentially improve an EPC rating, but it is a significant building intervention and shouldn’t automatically be specified simply because it improves a calculated EPC score.

The suitability of insulation needs to be considered alongside the existing construction, moisture behaviour, ventilation, detailing and condition of the building.

This is particularly relevant to older solid-wall properties where the cheapest theoretical EPC solution isn’t necessarily the most appropriate retrofit solution.

Our approach is therefore to consider both the calculated EPC benefit and the building itself.

The direction of travel for the private rented sector is towards higher energy-efficiency standards, with the Government’s current plans centred on improving rental properties by 2030.

However, EPC methodology and the way future standards are assessed are also changing.

For landlords, this makes it particularly important to distinguish between planning ahead and spending large amounts of money prematurely.

Understanding the current property, its existing EPC and the practical improvement options gives you a much stronger basis for deciding what work is worth undertaking.

For many rental properties, EPC band C is achievable, but the amount and cost of work required can vary considerably. A property already close to band C may need only relatively modest improvements, while another property with the same EPC letter rating could require significantly more work. The more useful question is:

If your property is already close to C, the answer may be relatively straightforward.

If it is further away, has solid walls, electric heating, an unusual construction or potentially expensive recommendations on its existing EPC, there can be considerable value in assessing the options before committing to work.

If your rental property is currently below EPC Band C and you want to understand what it could take to improve the rating, we can help.

TargetCO2 provides Landlord Rental Health Pack assessments to identify practical improvements and model their effect on the property’s EPC rating – helping you understand your options before committing to potentially expensive work.

Find out more about our Landlord Rental Health Pack assessments and get in touch to discuss your property – don’t forget to include the property address so we can look up the current EPC.