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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

EPC System Overhaul Threatens HMO Landlords and Short-Term Rentals

19th Feb 2025

The EPC consultation proposes that HMO landlords might soon need to secure a valid EPC for the entire property, even if they are renting out just a single room.


Image credit: iStock

For the time being an EPC is mandatory for an HMO only when the entire house is being rented out.

The consultation argues that mandating EPCs for HMOs will bring uniformity across the private rental sector.

The consultation states: “The private rented sector minimum energy efficiency standard (MEES) regulations apply to most domestic rental properties which are required to have an EPC.

“Mandating EPCs for HMOs when a single room is rented out will ensure that HMOs will need to comply with the requirements set out in the MEES Regulations if they did not have a valid EPC before this point.

“A valid EPC for an HMO when a room is rented out would ensure that a prospective HMO tenant could make informed decisions based on the energy performance of the building and an indication of potential energy costs.”

The consultation claims that requiring landlords to obtain EPCs for HMOs, will improve living conditions for tenants.

The consultation states that compulsory EPCs for HMOs will drastically improve the quality of tenants' homes.

The consultation says: “As HMOs are disproportionately occupied by vulnerable people, we anticipate that these measures will help ensure that tenants are living in thermally comfortable properties, with reduced costs during a time of high fuel poverty.”

Many HMOs are often converted Victorian buildings, now serving as self-contained units and changing EPC rules for these types of properties could make it unattainable for landlords make their properties achieve the new proposed EPC regulation.

Additionally, the EPC consultation reveals that if the government introduces a requirement for an EPC throughout the tenancy, HMOs will need to broaden their EPC compliance accordingly.

The consultation says: “For HMOs where there are often multiple separate tenancies running concurrently for a single property, this change will require an EPC to be in place at the point of marketing for the first letting, up to and including the date the final letting comes to an end.”

However despite the consultation's details it does not address the changes in the Renters' Rights Bill, which will make all tenancies periodic, it also lacks information on how these changes will align with the new EPC regulations.

The government has stated that if the proposals are implemented, HMO landlords will have a 24-month transitional period to secure a valid EPC.

The government states that, under the current guidelines, only furnished holiday lets are required to have an EPC for short-term rentals.

The consultation states: “There are no specific requirements set out in the Energy Performance of Buildings (EPB) regulations themselves.

“The current guidance states that an EPC is only required for properties rented out as a furnished holiday let, as defined by HMRC, where the building is occupied for the purposes of a holiday as a result of a short-term letting arrangement of less than 31 days to each tenant, and is rented out for a combined total of four months or more in any 12-month period, and if the occupier is responsible for meeting the energy costs for the property.”

The government says: “The Ministry of Housing, Communities and Local Government is working with the Department for Culture, Media and Sport (DCMS) to ensure that the definition of short-term rental property within the regulations aligns with DCMS’s definition of a short-term rental property.”

The government is recommending a regulatory update to mandate that short-term rental properties must have a valid EPC when rented out. This mandate will apply irrespective of whether the tenant is responsible for paying the energy costs.



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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/