The requirement to provide an Energy Performance Certificate (EPC) for listed buildings has been a mandatory aspect of the UK property market for over a decade. However, an increase in energy efficiency standards is on the horizon, which has led to significant confusion for landlords. Therefore, it is essential to clear up the misconceptions surrounding listed building compliance to avoid legal pitfalls.
Furthermore, as energy efficiency becomes a priority for the UK government, understanding your obligations as a landlord is more important than ever. Consequently, this guide aims to simplify the regulations and provide clarity on whether your historic property needs an EPC assessment.
Do listed buildings require an EPC for rentals?
Importantly, the simple answer is that most listed buildings do require an EPC when marketed for sale or let, unless specific criteria for exemption are met. To determine if your property is exempt, you should follow these steps:
- Assess the special architectural or historical merit of the building.
- Identify if the recommended energy improvements would unacceptably alter the building’s character or appearance.
- Commission an EPC assessment if the property is being marketed for sale or rent and no blanket exemption applies.
- Register a valid exemption on the PRS Exemptions Register if improvements are not possible.
The Evolution of EPC Regulations for Historic Buildings
The Energy Performance of Buildings (Certificates and Inspections) (England & Wales) Regulations 2007 first introduced the requirement for an EPC. Initially, Section 5(1) of these regulations mandated an EPC for any building sold or rented. Surprisingly, the exemptions listed in Section 4 mentioned places of worship and temporary buildings, but did not explicitly exclude listed buildings or those in conservation areas.
Moreover, the subsequent Energy Performance of Buildings (England and Wales) Regulations 2012 refined these rules. Section 5 of the 2012 regulations states that energy performance requirements do not apply to buildings officially protected where compliance would “unacceptably alter their character or appearance.” Therefore, the exemption is conditional rather than absolute.
Minimum Energy Efficiency Standards (MEES) and Compliance
The Minimum Energy Efficiency Standard (MEES) currently requires most rental properties to have an EPC rating of ‘E’ or above. Importantly, this standard applies to all existing tenancies as of April 2020. If your listed building is rated ‘F’ or ‘G’, you must take action to either improve the rating or register a valid exemption.
Furthermore, the MEES guidance published in 2017 clarified that there is no blanket exclusion for listed buildings. Specifically, if a property is legally required to have an EPC, it must comply with MEES. Alternatively, if the core improvements—such as double glazing or external wall insulation—would unacceptably alter the building’s historic character, then those specific works may be exempt.
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Understanding “Unacceptable Alterations” to Character
Crucially, the “in so far as” clause in the regulations is the basis for many compliance arguments. This implies that the exemption for an EPC for listed buildings applies only if the required works would negatively impact the property’s protected status. For instance, installing modern plastic double glazing in a Grade II listed property would likely be deemed an unacceptable alteration.
Consequently, landlords should focus on improvements that do not affect the building’s appearance, such as loft insulation or high-efficiency boilers. If these “acceptable” improvements still do not raise the rating to an ‘E’, the landlord may then apply for an exemption. In addition, always consult with a local conservation officer before undertaking major works on a protected asset.
EPC Compliance and Section 21 Possession Notices
For any tenancy governed by the Deregulation Act 2015, providing a valid EPC to the tenant is a prescribed legal requirement. Therefore, a failure to provide the certificate at the start of the tenancy rendered any future Section 21 notice invalid. As a result, landlords of listed buildings must ensure they have a valid EPC or a registered exemption before attempting to regain possession of their property.
Additionally, broader compliance including Gas Safety Certificates (CP12) and Electrical Installation Condition Reports (EICR) must also be in order. Importantly, LettingaProperty provides professional support to ensure landlords remain fully compliant with all UK legislation, from EPCs to the Tenant Fees Act 2019.
Frequently Asked Questions (FAQs)
Is an EPC for listed buildings always required?
An EPC is generally required for listed buildings when they are marketed for sale or let. However, exemptions may apply if the energy efficiency improvements required would unacceptably alter the building’s character or historic appearance.
What happens if my listed building has an EPC rating of F or G?
Properties rated F or G are currently in breach of MEES regulations unless a valid exemption is registered. You must either perform acceptable improvements or provide proof that all possible improvements would unacceptably alter the property’s character.
Can I serve a Section 21 notice without an EPC?
No. If an EPC is legally required for your property, you must provide a copy to your tenant before you can validly serve a Section 21 notice under the Deregulation Act 2015.
