Do I need an EPC report for a HMO?

Do I need an EPC report for a HMO?
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

With just a few years before the new regulations come into force in 2025, now is exactly the right time to start considering how your property portfolio will be impacted by the impending rules. Begin by throughly analysing your properties – what needs to be done in order that they move up to a C rating or above?

Later in this blog post I will touch on the subject of exemptions. Exemptions grant you that all-important green light, even if you don’t meet the magic C rating.) If you’re wondering if you need an EPC, the current government legislation and regulations give a clear definition as to when an EPC is needed: “An EPC is only required for a habitable unit if it is self-contained

Case Study 1 – A house or flat is rented by a number of tenants who have exclusive use of their bedrooms but share a kitchen and bathroom. In this case, each tenant has a contract with the landlord for the parts they have access to, but not for a whole dwelling. An EPC is therefore not required each time a tenant moves. Case Study 2 – A group of friends rent a property and there is a single contract between the landlord and the group as the contract is for the rental of a whole dwelling. An EPC is required for the whole dwelling.”  This guidance was then updated by the government: “Guidance for landlords of domestic private rented property on how to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E). 

Since the 1st of April 2020, landlords can no longer let or continue to let properties covered by the MEES Regulations if they have an EPC rating below E – unless they have a valid exemption in place.” So what are these valid exemptions? Exemptions (as defined by the PRS) are for properties that are legally required to have an EPC, let via a relevant tenancy type but cannot be improved to meet the minimum standard of EPC band E for one of the following reasons: “High cost” exemption. If the cost of making the cheapest recommended improvement exceeds £3,000 (inc. VAT) you will be granted an exemption. (Regulation 25) “All improvements made” exemption. Where all the “relevant energy efficiency improvements” for the property have been made (or there are none that can be made) and the property remains sub-standard (Regulation 25). “Wall insulation” exemption (Regulation 24(2) “The Regulations acknowledge that certain wall insulation systems may not be suitable in certain situations, even where they have been recommended for a property, and where they meet the funding requirements.

There is a special provision for circumstances in which cavity wall insulation, external wall insulation systems, and internal wall insulation systems should not be installed. This exemption is unique to each situation, and you should consult with an expert to get further guidance on your property’s eligibility. “Consent” exemption. Third-party consent exemption applies to domestic and non-domestic property (Regulation 31(1) & 36(2)) “Devaluation” exemption. Property devaluation exemption applies to domestic and non-domestic property. (Regulation 31(1) & 36(2)) “New landlord” exemption. Temporary exemption due to recently becoming a landlord applies to domestic and non-domestic property. (Regulation 31(1) & 36(2))

You will find more extensive definitions about each exemption, and the documents required to support your claim here. Keeping safe track of your EPC certificates is just one of the key features of Octo’s FREE property management platform.

Octo helps landlords keep track of compliance certification and keeps landlords on the right side of the law. Start using Octo today. We’re the leading FREE property management platform in the UK!