Do Holiday Lets Require An EPC?
Understand the EPC requirements for holiday lets in order to make informed decisions.
An EPC is necessary if a property is rented out for four months or more within any twelve month period.
Holiday accommodation that’s rented out for less than 4 months a year or is let under a licence to occupy do not require an EPC according to the uk government website on energy performance certificates.
Benefits of an EPC include cost savings, marketing advantages and increased energy efficiency.
EPC Requirements for Holiday Lets
For property owners who need an EPC, understanding EPC requirements for holiday homes is fundamental. An Energy Performance Certificate (EPC) records the current energy efficiency of a property and proposes ways to make improvements, potentially reducing energy bills and environmental impact.
Understanding energy performance certificates can be crucial in making informed decisions about energy performance in holiday homes.
The need for an EPC in a holiday let is determined by two main factors: rental duration and energy bill responsibility, which often includes utility bills.
Rental Duration Criteria
In the UK, if a holiday let is rented out for a combined total of at least four months in any twelve month period, an EPC is required. This rule is applied uniformly across all UK regions, ensuring that energy efficiency standards are met consistently. However, remember that this four-month rental period must be uninterrupted.
If your holiday let is rented out for less than four months a year or is let under a license to occupy, then an EPC may not be necessary.
Energy Bill Responsibility
Another factor that affects the need for an EPC in holiday lets is the responsibility of energy bills. In most cases, holiday let owners are responsible for paying the energy bills, not the guests.
If the occupants of the holiday let are not liable for energy costs, then an EPC might not be required. However, there are specific circumstances in which an EPC may still be necessary, such as if the holiday home is rented out for a total of more than four months in any 12-month period or if the owner cannot make a case for not requiring an EPC.
EPC Process and Costs
A qualified assessor performs a comprehensive evaluation of your property to obtain an EPC. They will inspect all aspects of the property such as age, size and construction. They will also assess the heating systems, insulation, glazing and lighting in the building.
Once the assessment is complete, you’ll receive an EPC report that details your property’s energy efficiency rating and recommendations for improvements.
It is a legal requirement that all rental properties must meet the Minimum Energy Efficiency Standard, which currently is a rating of E on the EPC.
The cost of obtaining an EPC for your holiday let can range from £60 to £120. Factors such as location, size of the property, and complexity of the building’s structure and systems may affect the cost.
You can contact us directly for a fixed price quotation.
Benefits of an EPC for Your Holiday Let
An EPC for your holiday let not only satisfies legal requirements but also presents multiple benefits. An EPC can help identify potential cost savings and serve as a marketing tool, attracting more environmentally conscious guests.
Creating a more sustainable and eco-friendly holiday experience for your guests is achievable through an emphasis on energy efficiency, such as installing an energy efficient boiler to increase energy efficiency.
Implementing EPC recommendations can lead to significant cost savings for holiday let owners. By making energy-efficient improvements such as:
- low-energy lighting
- solar panels
You can drastically reduce energy bills and decrease energy consumption. On average, the total cost savings from implementing EPC recommendations in holiday lets are estimated to be in the region of £15.7 million, including savings from fuel bills.
An EPC can also serve as a powerful marketing tool for your holiday let. Displaying an EPC rating indicates that your property meets certain energy efficiency standards, which can attract environmentally conscious guests looking for sustainable accommodation options. Furthermore, having an EPC rating can increase the visibility of your holiday let on rental platforms that require hosts to provide an EPC rating for their property.
By showcasing your commitment to energy efficiency, you can set your holiday let apart from the competition and appeal to a wider audience, including environmentally-conscious holiday makers.
Listed Buildings and EPCs
Listed buildings, recognised for their exceptional architectural or historic significance, are subject to certain exemptions when it comes to EPC requirements. They are only exempt from having to meet the Minimum Energy Efficiency Standards but not exempt from requiring an EPC.
Once an EPC is carried out, if it is below an E rating it would still be required to carry out improvements that are suitable for the building before an exemption can be applied for.
A simple example of an improvement on the EPC report that would not be detrimental to the building could be installing LED lights, or upgrading the existing boiler.
However, if there is uncertainty regarding whether alterations would negatively affect the character or appearance of the building, it’s important to consult with the local authority’s Conservation Officer. They will assess the proposed alterations and determine if an EPC is necessary.
Regional Differences: EPCs in Scotland and Wales
EPC requirements for holiday lets can differ slightly between regions within the UK. Despite the consistency of general rules across England, Scotland, and Wales, awareness of regional disparities is vital to ensure compliance with local regulations and local government guidance.
Scotland’s EPC Requirements
In Scotland, all holiday homes, including listed buildings, are required to have an EPC. This means that there are no exceptions for holiday lets from EPC requirements in Scotland. Additionally, the Scottish Government oversees enforcement of EPC regulations, and failure to adhere to these requirements can result in financial penalties of up to £2,000.
Wales’ EPC Requirements
In Wales, an EPC is not required for a holiday let if the property is leased out for less than four months in a year or if it is let under a licence to occupy.
These exemptions from EPC requirements are specific to holiday lets in Wales and differ from those in other UK regions. However, if the holiday let qualifies as a Furnished Holiday Let (FHL) and the owner is responsible for paying the energy bills, an EPC may not be required.
Improving Your Holiday Let’s Energy Efficiency
Significant improvements in your holiday let’s energy efficiency can result from implementing EPC recommendations. By taking steps to enhance energy efficiency, you can create a more sustainable and eco-friendly holiday experience for your guests while reducing costs and boosting your property’s marketing potential.
Low Energy Lighting
One of the simplest ways to improve your holiday let’s energy efficiency is by using energy-efficient lighting options, such as LED lights.
LEDs are cost-effective and reliable in various climates, making them an excellent choice for holiday lets. By replacing traditional bulbs with LED alternatives, you can save up to £6 per year per bulb, translating to significant cost savings over time.
Insulation and Heat Loss Prevention
Another essential aspect of improving your holiday let’s energy efficiency is insulating your property to prevent heat loss. Some excellent options for insulation materials include:
- Mineral wool
- Sheep’s wool
- Glass wool
- Spray foam insulation
- Polystyrene sheets
Proper insulation not only helps reduce energy consumption but also provides a more comfortable stay for your guests by maintaining a stable indoor temperature. Older homes that have solid walls can still benefit from solid wall insulation.
EPCs play a vital role in holiday lets, ensuring energy efficiency and providing property owners with valuable insights to reduce costs and enhance sustainability.
By understanding the requirements, process, and costs associated with obtaining an EPC, you can ensure compliance with regulations and unlock the benefits of having an energy-efficient holiday home.
Remember, improving your holiday let’s energy efficiency not only contributes to a more eco-friendly property but also offers cost savings and marketing advantages that can set your holiday let apart from the competition.
So, whether you own a listed building or a holiday home in Scotland, Wales, or England, take the time to explore EPC requirements and recommendations to enhance your property’s energy efficiency and create a more sustainable and enjoyable experience for your guests.
Frequently Asked Questions
Do EPC requirements apply to holiday lets?
Yes, EPC requirements do apply to holiday lets if the home is rented out for four months or more in any 12 month period. An EPC can also be beneficial in terms of cost savings.
Does an Airbnb require an EPC?
Yes, an Airbnb typically requires an EPC to be provided by the property owner when renting out the property, if the property is intended to be used for more than 4 months in a year. An Energy Performance Certificate is necessary in order to avoid any local authority enforcement action.
What are the legal requirements for a holiday let?
To legally operate a holiday let, you must adhere to fire safety regulations, obtain a licence from the local council, and have adequate insurance coverage.
What is an Energy Performance Certificate (EPC)?
An Energy Performance Certificate (EPC) is a record of the current energy efficiency of a property, detailing recommendations on how to reduce both energy bills and environmental impact.