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EPC Requirements for Landlords in Scotland
As a landlord in Scotland, it's important to be aware of the Energy Performance Certificate (EPC) requirements for your rental property. EPCs play a crucial role in understanding and improving a property’s energy efficiency.
The Scottish Government has proposed new regulations on rental properties in Scotland and their EPC rating.
The following article will provide an explanation of EPCs, an overview of the new requirements for Landlords, and highlight the potential penalty fines for non-compliance.
What is an EPC?
An Energy Performance Certificate (EPC) is a legally valid document that provides homeowners, landlords, and tenants with an understanding of a property’s energy efficiency.
The EPC assigns the property a rating between A (very energy efficient) and G (not energy efficient). The better the EPC rating a property has, the lower it will cost for gas and electricity.
EPCs also include suggestions to achieve a better rating for the property. Even if you're a tenant, you can still implement some of the improvements suggested in the EPC, such as choosing more energy-efficient light bulbs.
It’s important to note that an EPCs is only valid for 10 years from the date it was issued. If your EPC runs out, you must commission a new certificate if you’re planning to sell the property or setting up a new tenancy agreement.
New EPC Requirements in Scotland
The Scottish Government initially proposed private rental homes to achieve a minimum rating of ‘D’ by 2025. However, due to the impact of Covid-19 on the private rental sector, they’ve now amended the proposed requirements.
The new regulations will mandate all privately rented properties to meet a minimum EPC rating of ‘C’ by 2025, provided it is feasible and cost-effective, specifically during a change of tenancy. For all remaining properties that are unable to meet this standard by 2025, a deadline of 2028 will be granted.
Penalties and Fines for Breaching EPC Requirements
If a landlord doesn’t comply with the new EPC regulations, they could face a significant fine. Currently, the limit on financial penalties for breaching EPC requirements is £5,000; however, this is divided into four separate fines, depending on the infraction:
- EPC requirements are not met for less than 3 months = < £2,000 fine
- EPC requirements are not met for more than 3 months = < £4,000 fine
- Landlord provides false or misleading information about EPC compliance = < £1,000
- Landlord doesn’t comply with the notice = < £2,000
Please note that the above penalties may change over time.
What Should You Do?
If your rental property(ies) has(have) an EPC rating of ‘D’ or above, we may recommend beginning work on improving the rating in time for 2025.
The EPC Register
You can quickly find an AO (approved organisation) assessor who works in your local area via the Scottish EPC register. If you want to check if a building has an EPC, you can search the register by entering either the building's postcode or Report Reference Number (the 16-digit number shown on the top right-hand corner of an EPC).
Requesting an EPC from Allied Surveyors Scotland
At Allied Surveyors, we are more than happy to provide standalone EPCs to individuals renting out their property in Scotland. You can get in touch with Head Office here for more information.
If you are selling your property, the EPC is included in the Home Report, which is required, by law prior to marketing the property. Please click here to request a Home Report.