Private residential landlords are legally required to provide an Energy Performance Certificate (EPC) when renting out a home to new tenants.
An EPC gives information about a property's energy efficiency. You must give a copy to prospective tenants when they view a property, when they ask for any written information about a property and before any rental contract is signed. It remains valid for ten years and can be used for all new tenants in that period.
EPCs are required for self-contained properties only. They are not necessary when a tenant rents a room and shares facilities.
The EPC provides an energy performance rating from 'A' (highly efficient) to 'G' (least efficient). Because ratings are standard, tenants can easily compare the energy efficiency of one property to another. Ratings are influenced by type of property, its age, layout, construction, heating, lighting and insulation. The typical rating for a property is D or E.
Ratings enable prospective tenants to assess the estimated costs of heating the property and the amount of carbon dioxide released as a consequence.
Estimated running costs are based on assumptions about a property (ie the number of occupants and how long it is heated during the day). However, average fuel prices from the date the EPC was produced are used, which could be up to ten years old. Actual running costs will vary depending on current fuel costs and tenant use.
Take a look at the example below