EPC

As of 1st October 2008 landlords will be legally required to provide prospective tenants with an Energy Performance Certificate (EPC). The EPC provides tenants with information on the energy efficiency of the property. The property is given a standard energy and carbon emission efficiency grade from 'A' to 'G', where 'A' is the most efficient. Most modern buildings nowadays are awarded a D.

Not only does the Certificate provide a measure of the energy efficiency of different properties it also recommends a number of changes to make a property more energy efficient. Information is also provided about likely running costs for the tenant.

The EPC also gives a potential rating for the property with the changes implemented. Such changes are split into low cost improvements (up to £500) and high cost improvements (over £500). Low cost improvements include:

  • cavity wall insulation
  • changing to low energy lighting
  • putting thermostatic valves on radiators
  • loft insulation

 

High cost improvements involve structural changes to the property and can include double glazing installation.If you are a landlord, you'll need to make an EPC available to prospective tenants at the first available opportunity; ideally before any rental contract is settled. An EPC is only required for a property which is self-contained. It is not required when a tenant rents a room and shares facilities.

Landlords are not legally obliged to act on the recommendations in the report. However, taking action could make the property more attractive for sale or rent by making it more energy efficient.

There's a tax incentive too. Landlords may qualify for the Landlords Energy Saving Allowance (LESA). This permits private landlords who pay income tax to offset up to £1,500 spending on certain energy efficiency measures per dwelling (not per building) per year. The qualifying measures are loft, cavity, floor or solid wall insulation, draught proofing and hot water system insulation.

You don't need to renew EPCs every year or if there is a change of tenant. The Certificates are valid for 10 years and only apply to England and Wales. Northern Ireland and Scotland are producing their own regulations.

EPCs are created from a set of survey results carried out by an 'accredited' Domestic Energy Assessor (DEA). Standard information on the type of property and construction are collected and fed into a government-approved software programme.

Other information used to produce the EPC include room sizes, types of windows, water heating systems and controls, plus other details such as wall, loft and water tank insulation.

The price of an EPC depends on the accredited organisations which issue them.

Obtaining an EPC for an average sized home may take the same time as a house valuation report which has to be prepared when a property is put up for sale. The exact time will vary from property to property.

The provision of EPCs is enforced by the Trading Standards department of the local authority. If they receive a complaint that an EPC has not been provided they can impose a penalty charge on the landlord of £200 for each breach.

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