Landlords' Energy Certificates

 

Why are energy performance certificates required ?

An energy performance certificate (EPC) is intended to inform potential tenants about the energy performance of a dwelling, so they can consider energy efficiency as part of their decision to rent. According to the Government, buildings are responsible for almost 50 per cent of all energy consumed in the UK and over a quarter of CO2 emissions. The Government argues that in the case of rental properties, a high rating will be more desirable and will impact on the marketability of properties – and hence ultimately on rent levels.

 

When are energy performance certificates required ?

From 1st October 2008, a landlord offering a dwelling for rent is required by law to provide prospective tenants with an EPC for their property. An EPC should be provided to a prospective tenant at the earliest opportunity and in any event before entering into a tenancy agreement. The Residential Landlords Association (RLA) recommends giving a copy of the EPC to a new tenant.

Click here for the RLA guide to EPCs http://www.rla.org.uk/landlord/guides/epc/

 

When is an EPC not required ?

The legislation applies to all lettings except :

            - short term holiday lets

- bedsits, where there is a shared kitchen and/or bathroom

- a room in a hall of residence or hostel

- an individual room in a flat or house (e.g. where a tenant rents a room with exclusive use of bedroom and shared use of the kitchen, toilet and bathroom)

- mixed self contained and non self contained accommodation – one EPC is required for each self contained flat/unit, but no EPC for the remainder of the property

- if a property is sub-let then responsibility lies with the landlord under the sub-tenancy (i.e. your tenant) to provide an EPC

- EPCs are not required if, instead of letting a property out, you grant a licence, for example, to a lodger

- an EPC is required to be shown only to genuine prospective tenants

 Click here for the RLA guide to EPCs http://www.rla.org.uk/landlord/guides/epc/

 

How long is an EPC valid for ?

An EPC for let property is valid for 10 years, and it can be used time and time again during this period.

 

What about tenancy renewals ?

An EPC is not required for the renewal of a tenancy with the same tenant.  However, if there is a change in the tenants when the tenancy is renewed e.g. because one tenant moves out and is replaced by another, a copy of the EPC should be provided to the new tenant before they sign up.

 

How much will an EPC cost ?

Please contact us for a quotation. Discounts are available for multiple properties.

 

Penalties for not providing an EPC ?

The enforcement authority for EPCs is the Local Authority Trading Standards.  There are fixed penalties of £200 per dwelling for failing to provide an EPC when required, and a six month time limit for any enforcement action to be taken.

  

What is an EPC and what does it mean ?

An EPC provides the energy rating for a dwelling, based on the performance potential of the dwelling itself and an environmental impact rating showing carbon dioxide emissions. The EPC is accompanied by a recommendation report, providing information on improvements with an indication of the payback period.

 

The legislation ?

The legislation for landlords came into force on the 1st October 2008, marking the final roll-out to comply with the EU’s Energy Performance of Buildings Directive (EPBD) which applies to all property, including rented property, which became law in 2003 and allowed until January 2009 for full implementation. For more information about implementation, click here for the Directive Implementation Advisory Group http://www.diag.org.uk/

 

Tax incentives available for EPC improvements

As an incentive, in April 2004 the Government introduced Income Tax Allowances for insulation improvements. Currently, landlords can claim (subject to certain conditions) a deduction for income tax purposes up to a maximum of £1,500 per dwelling when they install loft, floor, cavity/solid wall insulation, draught proofing or hot water system insulation in a dwelling which they let. Click here for the latest information from the Inland Revenue http://www.hmrc.gov.uk/manuals/pimmanual/PIM2072.htm

 

Help available from Energy Savings Trust

As a non-profit organisation that provides free impartial advice tailored to suit each individual, the Energy Savings Trust can help save money and fight climate change by reducing carbon dioxide emissions from the home. Help is available on grants and offers, as well as advice on generating your own energy. Click here for more information http://www.energysavingtrust.org.uk/

 

need an EPC for a residential let ?   contact us :

tel: 0191 428 3335     fax: 0191 428 3388

email:  enquiries@energysurveysnortheast.com

 

company number 06720602  registered office:

TEDCO Business Centre, Viking Industrial Park, Jarrow, Tyne and Wear  NE32 3DT