EPC rating for HMO with bills included?

The real answer is nobody knows not even the government so do nothing until there is clarity and clear legislation on the table is my advice.

EPC is a blunt tool so it comes as no surprise that the energy estimation is so far out. The RdSAP method has many floors and needs a major refresh. The MCS method is much better but isn’t used for EPC.

If your build is listed then it is very likely exceptions will apply so again do nothing.

Hi Sarah,

The good news is that listed buildings can be exempt from minimum EPC requirements but yours, at a D rating is already compliant.

The exceptions are only if making the alterations would alter the appearance or character of the building, and mainly apply to buildings in conservation areas where stricter planning rules are in place.

It’s quite a complex area but you can get free advice from The Society for the Protection of Ancient Buildings (SPAB) which is funded by Historic England.

You can call the SPAB’s Technical Advice Line on 020 7456 0916. Weekdays 9.30am-12.30pm

Good Luck!

Could I make all my properties inclusive of gas and electric in the rent, then if usage was beyond normal expectations, and way over an agreed limit, then the rent would be increased.
This would give an incentive to economise but also could favour a prudent tenant with rent reduction, how would an EPC C be needed?

Hi
I would be interested in who you use for gas electric internet etc for a. All inclusive package as many companies refuse to deal with landlords and want to deal with tenants directly
I have students HMO to clarify

Reply to the comment left by Lawrie Madden at 18/02/2025 – 12:11
I have several HMOs and never had any energy company query this.

What an interesting question, and it prompted me to have a look at mine.
1895 large 3 bed (let as 5) mid terrace, solid walls and original sash windows (but internal secondary glazing). tenants are always boosting the heating and having 30 min showered each. My EPC says gas use should be 28528kw per year. the actual use from the last year was 18521kw. That’s 45% less than what the EPC predicts.

Reply to the comment left by Peter Merrick at 18/02/2025 – 13:11
I would be interested in who you use

The current rules do not require an EPC for HMOs where heating and hot water are included.

As has been said, there are other exemptions. It’s all a bit Catch 22, as you have to show that the measures cannot be carried out due to listing/conservation restrictions or that the cost of the works exceeds the threshold – so would need the EPC recommendations to determine what is recommended.

If you inform the assessor that the building is listed or subject to conservation restrictions before the assessment, they should exclude any measures, such as external insulation, which are unlikely to get planning permission.

Your question has several bits to it so here goes:-
(1) The estimated heating of 22000 kWh is based on a standardised heating pattern each week, whether or not the heating is actually on. It does not take account of the actual numbers of people living in the property, whereas your actual utility bills do. The EPC software calculates using a rather complicated algorithm the expected number if people the property would normally be expected to live there in a property if that size and of a single household. So the software will for example use a normalised number of baths/showers per week based on the calculated number of persons, not the actual number.
(2) The disparity can then go further to be explained by the fabric inputs entered into the EPC software.For example if the external walls had been insulated, but the Assessor had no documentary evidence to support this, then they will have selected dry-lined and the insulation is effectively ignored thus over egging the heating aspect it has calculated. The EPC would show the walls as Solid brick, as built, no insulation (assumed). The documentary evidence is crucial in these circumstances.
(3) EPCs are Asset ratings based on the building and its expected usages and dies not take account of the fact that the bills, as in your case, are paid by you.
(4) currently listed buildings may be exempt from an EPC, if the improvements that would be recommended would naturally affect the character of the building. In reality you would not know unless you had an EPC assessment carried out. Going forward, and to avoid confusion, the Government are proposing that listed buildings would have an EPC irrelevant of whether the recommendations would naterually alter the character of the building. It is fair to say, and based on my experiences, confusion is evident with some residential agents and some ebergy assessors, so it us not surprising this extends to landlords too.

Reply to the comment left by Jason at 18/02/2025 – 08:18
I’m sure they will use the climate change excuse to force EPC grades regardless of who pays the bill. It’s too easy an option to get what they want at your expense as you can be lambasted as a polluter.