Energy Performance Certificate for Holiday Lets: A Guide

There are many things to consider when you’re thinking of buying a holiday let, and having an Energy Performance Certificate is one of them.

An EPC, or Energy Performance Certificate, is a mandatory document that you must have available when owning any building in the UK. It states how energy efficient your building is and what impact it is having on the environment.

What is an EPC?

EPC stands for Energy Performance Certificate. This is a compulsory scheme put in place to try and have better energy efficiency across the EU. Every building must have one. It tells you how energy efficient your building is on a scale of A (most efficient) to G (least efficient). As well as the environmental impact that your property could have.

Some of the determining factors of an EPC include heat and light usage as well as carbon dioxide emissions. An EPC will tell you how much these are likely to cost. Also, the potential energy efficiency of your building and examples of things you can do to improve your energy performance rating.

Discover ways to make your property more efficient with our handy guide to eco-friendly holiday letting.

An Energy Performance Certificate is divided into four segments:

1. The property’s performance and environmental impact

2. An estimate of your energy use based on typical assumptions

3. A summary of your energy performance

4. Recommendations for improving your energy efficiency

How long is an Energy Performance Certificate valid for?

An EPC is valid for 10 years after each assessment.

Please use the EPC GOV UK tool to check if the property already has a certificate. The first dates for EPC’s were around 2007 so the property may still have a valid certificate.

How to get an EPC

To get an Energy Performance Certificate for your property, you will need to book an EPC survey with a Home Inspector or a Domestic Energy Assessor. They will visit the property, have a look around and ask you questions. Before using the Reduced Data Standard Assessment Procedure (RDSAP). To calculate your energy performance score.

The assessment cannot be carried out by yourself as must be completed by a qualified assessor.

Find yourself a Domestic Energy Assessor by visiting the EPC Register website.

Are EPCs a Legal Requirement?

As of 2009, any building in the UK that is available for buying or renting, whether domestic or commercial, is legally required to have an EPC. If you do not have an EPC for your building, you could be charged up to £200 per day.

Holiday accommodation rented out less than four months of the year is not required to have an EPC in place.

The average cost for an EPC to be carried out can be between £35 and £120. This is dependent on the size of the property.

All holiday homes in Scotland are required to have an EPC. This will also include listed buildings. It is the responsibility of the owner to make sure a certificate is in place.

This information can be found under EPC-12 of the Scottish Government website.

How are EPCs Calculated

Several determining factors are considered when calculating your EPC rating. Using the RDSAP system.

To calculate your EPC rating, the following factors must be determined:

• Type of property

• Age of property

• Construction type

• Dimensions of property

• Window and glazing types

• Levels of insulation

• Heating systems

• Lighting types

Using this information, an estimated level of use is calculated for, energy use, CO2 emissions and fuel costs. Remember that these figures are calculated based on the average property with similar features to yours.

Your actual costs will differ from those estimated.

Minimum EPC Rating for Holiday Lets

The higher the rating for the property, the less effect it is having on the environment and the costs paid by yourself.

Your holiday let is given a rating once the check has been complete.

The minimum rate given is ‘G’ (least efficient), and the highest rating for any property is ‘A’(most efficient).

New EPC Regulations for Holiday Lets in 2025

Changes were due to come in 2025 for EPC requirements, which would have seen a new minimum rating for new properties, from rating E to C under a new tenancy agreement. By 2028, all existing properties would have required to have this in place. Scotland is still planning to go ahead with the 2025 requirement.

However, during his speech in September, the Prime Minister announced landlords will not be required to improve the efficiency of their rental properties and no longer need to upgrade their minimum rating.

Legislation proposed to improve the energy efficiency of rental properties was revealed back in 2021, however, it had not been passed in parliament before being put on hold. EPC ratings for England and Wales are set out by the UK Government, both Scotland and Northern Ireland have run their own separate consultations.

In Scotland, the minimum rating for rental properties is currently ‘E’. The proposals to increase this to a rating ‘C’ from 2025 are still coming into force, with existing owners required to have the rating in by 2028.

In Northern Ireland, you must still have an Energy Performance Certificate but there is no minimum rating for rental properties. There are proposals however to look at introducing a minimum requirement going forward.

EPCs for Listed Buildings

Unless your property is in Scotland. There are certain instances where you may not need an EPC due to it being a listed building.

Advice should be taken from local councils to confirm if an EPC is required. But if the listed building needs alterations to increase the energy efficiency rate, this can include any character changes to the property. The building may not be required to have an EPC. This is part of the Energy Performance of Buildings (England and Wales) Regulations 2012.

Not all alterations to the building could alter the property, e.g., changing to more efficient heating or lighting system. So please check before starting any changes.

Advantage of having EPC for Holiday Lets

There are some advantages to having an EPC certificate at the property. Even if it is not required under a listed building.

Having an EPC completed will highlight points of the property that could be improved in the future. This will then save you money in the long run.

It will show the costs currently at the property and then the potential costs if the property is made more efficient.

By taking the potential savings onboard you will not only save future costs. But it will also help in reducing CO2 emissions. Making a difference towards helping to save the planet.

Also, consider highlighting the certificate in the property or via the welcome folder. This shows to guests how proud you are of the achieved rating. With also what has been adjusted in the property to show the current rating.

Ways to Improve the Energy Performance Certificate rating for your property.

• Swap light bulbs for LED versions. LED is more energy-efficient and can make a difference.

• Upgrade to double glazed windows. This can reduce heat loss at the property which will save long term costs.

• Loft insulation improvements.

• Modern boiler. This can be an investment at the beginning, but newer boilers are more efficient with long term savings.