What is an EPC?
If you're wondering ‘What is an EPC?', it's probably because you're a little confused. We've all seen those colourful charts on property websites but how many of us know what they really are? It stands for energy performance certificate. These are important so you need to know about them.
An EPC rates how energy-efficient the house is. It will be marked between A and G. A means fantastic and G means terrible. On average, most properties are between D and E. These were introduced to England and Wales in 2007, and the law stipulates that every buy-to-let residential house must have an EPC. Also, your rating must be know worse than E.
Before you purchase a house with a view to renting it out, check the energy performance certificate. If the rating is worse than E, you need to steer clear of it. Alternatively, you can find out why the rating is so bad and see if there is a way to simply rectify it.
How can a bad EPC be improved?
You'll need to figure out what the problem is by asking the landlord or getting your own independent survey done. It could be a case of the boiler needing to be changed, perhaps there are windows which need to be double glazed or maybe there needs to be a secondary heating system.
In this video, you will learn lots more about the energy performance certificate. It's one of those topics which is worth getting your head around once and for all. It will always crop up in conversations and it is a vital part of the property investing journey. It's especially important now as the environment becomes increasingly prominent as a discussion in the public sphere. It's possible you may even come across tenants who won't stay in a property which isn't energy efficient.