Landlord Fact Sheet [EPC]
Why do I need an Energy Performance Certificate for my rental property?
You may be aware of Energy Performance Certificates (EPCs) in relation to Home information Packs (HIPs); however the EPC is part of a much larger programme initiated by the EU called the Energy of Buildings Directive (EBPD 2002/91/EC. The EU made this directive law and as such every EU Country must have systems in place, by the end of this year, for EPCs to be carried out on all residential and commercial buildings at point of sale or rent.
The UK Government have already implemented this in the sales process of residential property via Home Information Packs. The role out to residential rental is already underway; however, it will become mandatory to have an EPC for property being marketed for rent on 01 October 2008. It will be illegal to advertise a rental property without an EPC, and failure to produce one could result in a £200 fine.
Under these new rules, Landlords will need to provide an EPC to all prospective tenants and provide a hard copy to the selected tenants. However, you will not need an EPC to tenants that renew their contracts as it is not necessary to provide an EPC to an existing tenant.
EPCs are intended to help prospective tenants compare the energy efficiency of various properties.
What is included in the EPC?
There are two rating on the front page of the EPC: The Energy Efficiency Rating and the Environmental Impact (CO2) Rating. Both are based in a scale of A to G, where A is the best. In addition the front page also shows an estimate of the energy required to provide heating, lighting and hot water, which includes an estimated cost to the tenants.
the certificate also includes a recommendation report which will outline any potential improvements that would make a difference to the energy consumption of the building. This includes details of the approximate cost of improvements and the difference each improvement would make to the performance rating and the impact this would have on the cost of energy provision for the property.
The inspection will include assessment of the construction, heating/hot water, windows and insulation of the property. All of this information will be fed in to a computer which then calculates the ratings and generates a certificate.
Where do I get an EPC and how much will they cost?
The EPC is carried out by fully qualified and accredited Domestic Energy Assessors (DEAs) and the cost is dependant on the size, type and location of the property.
Fees approximately £60 per property.
Unless a Landlord holds an EPC incorporated in a Home Information Pack (HIP) we will arrange to have the certificate produced for the commencement of marketing.
What impact will EPCs have on the environment?
The Energy Saving Trust have estimated that the average property owner could save over £300 a year on fuel bills related to their property by carrying out the basic recommendations in the EPC. Indeed, if only one fifth of home owners made the basic changes set out in the EPC, collectively they could save around £100m a year on energy bills and cut carbon emissions equivalent to taking 100 cars off the road.