For private landlords, letting agents and tenants
Energy Performance Certificate FAQs
- What is an Energy Performance Certificate (EPC)?
- What does the Government hope to achieve by this new regulation?
- How long is an Energy Performance Certificate valid for?
- Who needs an Energy Performance Certificate?
- I am a landlord, what are the benefits to me?
- Penalties for Non-Compliance
- How do get an EPC assessment done on my property?
What is an Energy Performance Certificate (EPC)?
An Energy Performance Certificate is intended to give an estimate of the comparative energy efficiency of a property. The certificates are commissioned by the seller/landlord (or their agent) from an accredited Domestic Energy Assessor (DEA), who visits the property to collect the relevant data and creates the certificate. This data includes the date of construction of the property, heating systems, insulation, and double glazing, etc., and factors in the Building Regulations in force at the time of construction of the main building and any extensions.
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.
The energy rating charts (example above) are included in an Energy Performance Certificate, which explains about the property's assessment in more detail.
What does the Government hope to achieve by this new regulation?
The EPC is part of the Government's strategy to meet its published targets for reduction of carbon dioxide emissions. Residential housing accounts for 27% of all emissions of carbon dioxide in the UK. The intention is that house buyers and those seeking homes for let will be influenced by the ratings and choose homes with good energy efficiency ratings. This in turn will encourage sellers, landlords, and developers to build the relevant improvements into their properties and thus improve the energy efficiency of the nation's housing stock.
How long is an Energy Performance Certificate valid for?
An Energy Performance Certificate, in theory, is valid for 10 years. However, since February 2008, legislation dictates that if an existing Energy Performance Certificate is more than a year old when the property is put back on the market, then a new one is required.
If a property owner has improved the energy efficiency (e.g. by insulating the loft) he/she can then commission another Energy Performance Certificate, which may obtain a better "energy efficiency rating".
For a rental property, there is no need for another inspection before the 10 years are up unless improvements are made to the property.
Who needs an Energy Performance Certificate?
Property Sellers
Almost every property in England and Wales now requires an Energy Performance Certificate if it is marketed for sale. This is a legal requirement. A sale cannot occur without an Energy Performance Certificate in place.
Landlords
Almost every rental property in England and Wales requires an Energy Performance Certificate from 1st October 2008, if the property is marketed to let. If you are a buy to let landlord renting a property which is not a House In Multiple Occupation (HIMO) then you will need an Energy Performance Certificate. This is a legal requirement.
A tenant cannot 'legally' move in to the property until an Energy Performance Certificate has been produced, from this date.
It is therefore advisable for landlords to commission an Energy Performance Certificate sooner rather than later as at 1st October 2008 there will be a large demand for a limited number of Domestic Energy Assessors. It is therefore quite possible that your Energy Performance Certificate won't be completed by the time your tenant wishes to move in. This could possibly lose you the tenant and delays or reductions in rental payments may occur.
I am a landlord, what are the benefits to me?
The energy rating can help rent out your property. They indicate to a prospective buyer or tenant how energy efficient your home is. It should also provide information that may help to reduce the running cost of the property.
Penalties for Non-Compliance
On 8th February 2008 the Department for Communities and Local Government warned landlords that the Government is considering a 'fixed penalty charge' notice, which could be as much as £200 per dwelling, per day, for any landlord who fails to provide an up to date EPC to tenants.
To book an EPC, call Brian Kilcoyne on 01625 420402 or email dea@propertyinventoryservices.co.uk