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Landlords EPC for Property Lettings

Landlords:From 1st Oct 2008 all rental properties require an EPC

The Legal Background

From 1st October 2008 a Landlords EPC (Energy Performance Certificate) is now required whenever a dwelling in the social or private rented sectors is let to a new tenant.
The Landlords EPC must be made available free of charge to prospective tenants at the earliest opportunity and a copy must be given to the person taking up the tenancy.
EPCs are valid for 10 years and can be re-used as many times as required within this period. It is not necessary to commission a new Landlords EPC on every change of tenant. However, if a newer EPC has been produced only the most recent one is valid.
A Landlords EPC is not required provided the same tenant has been in continuous occupation since before 1st October 2008. However landlords may consider it commercially beneficial to commission EPCs at their discretion.
The landlord, including letting and management agents and estate agents acting on the landlord's behalf are responsible in the performance of the Regulations. This includes the commissioning of an EPC, a copy of it including the recommendation report to be made available free of charge to prospective tenants. As a minimum this should be when they are first given written information about the dwelling or are arranging to view it and before any rental contract is entered into. 

What does an assessment for an EPC involve?

An accredited energy assessor needs to visit a property to conduct an energy assessment for an existing building. During the assessment they collect information on the property, which includes details of its dimensions, construction and heating/hot water provision. He/she will need to access loft areas, all rooms and locations such as cupboards where the boiler/hot water tank would be for example. There would be no need to lift floor boards, move furniture etc.
The time taken to perform an energy assessment will vary according to the size and nature of the property. Normally it should take approx 45-60 minutes for smaller properties.
This information is fed into the approved software programme which produces the EPC and recommendation report. The energy assessor will then record the certificate on to a national register via his or her accreditation scheme and provide the seller, or prospective landlord with a copy. The certificate is then ready to be given to new building owners or made available to prospective buyers or tenants.

Energy performance Certificates

The requirement is being introduced to comply with the EU’s Energy Performance of Buildings Directive (EPBD) which applies to all properties. Energy Performance Certificates (EPC) not only tell you how energy efficient a home is on a scale of A-G but also tells you, on a scale of A-G, about the impact the property has on the environment. The average property in the UK currently has a rating in bands ‘D-E’, with rating ‘A’ being the ideal target.

The EPC also gives you recommendations on how to improve the rating, not only to benefit the effect on the environment but to help homeowners save money on energy bills.     
Factors such as age, size, location and condition of the property will all affect its rating. The recommendations made in the EPC will also consider these factors before tailoring suitable energy saving suggestions to each property

A good rating will indicate that your property is of premium quality and the reverse could be a rather less attractive proposition. You are likely to be compared with other market opportunities. It is worth noting that the EPC generated is quite candid in reporting the various elements ranging from 'very poor' to 'good' and will include a summary of recommendation for improvements. 
Grants are available for improvements to energy efficiency.
It follows that a good rating could be one justification for a premium rent so there is a need to consider a balance between investing in efficiency or settling for a lower rent. It would seem sensible to assume that running costs will be a sensitive subject to prospective tenants particularly since all the information must be made available up front from the 1st October 2008.
If you have a portfolio of properties it may be possible to use existing data or identify a commonality which would allow some cloning of data for the Assessor in order to reduce fees. The CLG (Communities and Local Government) is expected to publish specific guidelines for this shortly.
In certain circumstances it may be that an Landlords EPC is not required at all as for example tenancies with shared facilities (HMO's).
We would be delighted to discuss with you the relevant issues prior to survey for the Energy Performance Certificate.
If you need more advice please visit EPC FAQ's or feel free to contact us .
We look forward to being of service to you.


For More detailed Information on Energy Performance Certificates for Landlords follow this link:  Landlords EPC Information 

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