HMO

In particular, in England, we highly recommend that an EPC is obtained for the building even where the lettings may be on individual room lets. This is because the penalty for failing to provide an EPC is that no section 21 possession notice can be served. It’s our view that it’s not worth the argument with the court as to whether an EPC is required in a particular instance and instead to just have one done and ensure the tenant gets a copy before or at the time of signing for the tenancy. The cost is around £60 – £80 and lasts 10 years.

That being said, the guidance issued for the marketing, sale and letting of dwellings states:

An EPC is not required for an individual room when rented out, as it is not a building or a building unit designed or altered for separate use. The whole building will require an EPC if sold or rented out.

If the property as a whole does have an EPC and is let as individual rooms, the EPC for the property as a whole must achieve an “E” rating or better in order to continue renting the rooms from 1 April 2018:

Please note that there is no obligation to obtain an EPC on a letting of an individual non self-contained unit within a property, such as a bedsit or a room in a house in multiple occupation (HMO) . However the property in which the unit is situated may already have its own EPC covering that property as a whole; this could be because the property had been bought within the past ten years, or because it had previously been rented out on a whole-property basis. If a property as a whole has a valid EPC and that EPC shows an energy efficiency rating of F or G, then the owner/landlord will not, from April 2018, be able to issue new tenancies for non-self-contained units within the property until steps are taken to comply with the Regulations