NEW LEGISLATION FROM OCTOBER 2008: ENERGY PERFORMANCE CERTIFICATE REQUIRED FOR RENTAL PROPERTIES
From 1 October 2008, if you are renting out your property, you will need to provide a certificate to any prospective tenant. The energy rating can help rent out the property. They indicate to a prospective tenant how energy efficient the home is and will also comment on any white goods left as part of the inventory of the property. It should also provide information that may help to reduce the running cost of the property.
The Facts
* It is mandatory for all new lets.
* An Energy Performance Certificate will be valid for 10 years.
* It can be renewed at any time should the landlord have carried out any work to improve the efficiency of the property.
* An EPC will not be required for a renewal of tenancy.
* We still await confirmation of the situation where one or more of a group of sharers change.
* It applies to all residential tenancies regardless of the tenure type.
* A landlord does not require to carry out any of the works suggested as a means of improving the property.
* An EPC must be available to any prospective tenant before they have committed to the property or have viewed the property.
* The tenant must be provided with a copy of the EPC before the start of a tenancy. This of course will require agents and landlords to be able to exhibit an EPC in September or even earlier if the tenancy does not start till 1st October or later.
* A landlord whose tenant is in receipt of Local Housing Allowance (Housing Benefit) may find that the tenant is eligible for a grant to have some of the works which would improve the efficiency of the property carried out. It is the tenant who is eligible but the landlord’s permission is required and may be withheld. There may be conditions attached to this and the local authority will provide guidance when application is made by the tenant.
* A landlord carrying out certain works may be able to claim a Landlord’s Energy Saving Allowance by setting certain expenditure up to £1500 per property against their income tax. This is in addition to any other allowable expenditure.
* An EPC is carried out by a domestic energy assessor.
What does an Energy Performance Certificate look like?
Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.
The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
How much will it cost for an Energy Performance Certificate?
Please note that it's early days with the introduction of EPC's for lettings properties and these are estimated prices only.
1 Bedroom properties £59 + VAT
2 Bedroom properties £69 + VAT
3 Bedroom properties £79 + VAT
4 Bedroom properties £89 + VAT
For any property over 4 bedrooms or over 500sq.m price on application.