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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
Energy
Performance Certificate Frequently Asked Questions
Click for a Sample EPC
Order
an EPC
Fees
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