An Energy Performance Certificate (EPC) is a document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). EPCs are required whenever a property is built, sold, or let, and they’re valid for ten years. The certificate includes the current EPC rating and a potential rating showing what the property could achieve with recommended improvements.
EPC ratings are calculated based on the property’s construction, insulation, heating systems, windows, lighting, and renewable energy sources. A qualified Domestic Energy Assessor (DEA) conducts the assessment for residential properties, while a Non-Domestic Energy Assessor handles commercial EPCs. The assessment follows the government’s Standard Assessment Procedure (SAP) for dwellings or the Simplified Building Energy Model (SBEM) for commercial buildings.
Under the Minimum Energy Efficiency Standards (MEES) regulations, landlords in England and Wales cannot let a property with an EPC rating below E unless a valid exemption has been registered. Since April 2020, this applies to all tenancies — not just new lettings. Penalties for non-compliance can reach up to £5,000 per property. The government has proposed raising this minimum to EPC rating C for new tenancies, though the implementation timeline remains under discussion.
For landlords and property managers, EPCs are more than a legal box to tick. They directly impact MEES compliance, affect property values and rental yields, and increasingly influence tenant decisions. Properties with poor EPC ratings may require significant investment in insulation, heating upgrades, or renewable energy installations to meet current and future standards.
Common improvements that boost EPC ratings include loft and cavity wall insulation, upgrading to a condensing boiler, installing double or triple glazing, adding thermostatic radiator valves, and switching to LED lighting. Solar panels and heat pumps can make a dramatic difference to ratings, though the upfront costs are higher.
Custodia helps property managers track EPC ratings and expiry dates across their entire portfolio, with automated alerts for properties approaching MEES thresholds and a clear view of which properties need attention before regulatory deadlines.