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Rental Property

From October 2008 landlords offering a property for rent will be required by law to provide prospective tenants with an Energy Performance Certificate (EPC) for their property.

The Certificate will have to be provided free of charge, either before or when any written information about the property is provided to prospective tenants or a viewing is conducted.

The “Good News”

The good news is that a new EPC will not be required on each let, since in the case of rental property; EPCs will be valid for 10 years.

The requirement is being introduced to comply with the EU’s Energy Performance of Buildings Directive (EPBD) which applies to all property, including rented property. This became law in 2003 and allowed until January 2009 for full implementation so as to provide time for sufficient numbers of energy assessors to be trained.

The Directive’s requirements have been introduced into English and Welsh law. The full requirements are included in the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007

Landlords wishing to make energy saving improvements to their properties either before or after obtaining an EPC are offered some help from the Government.

The Landlord's Energy Saving Allowance, originally introduced in April 2004, now covers loft insulation, cavity wall insulation, solid wall insulation, draught proofing, hot water system insulation, and floor insulation.

Expenditure on these items would otherwise be treated as capital expenditure, meaning it could not be deducted from rental income to arrive at a taxable item. However, the LESA allows up to £1,500 per property spend on such items as a straight deduction from rental profits. Further details are on the Inland Revenue website.

The Energy Performance Certificate (EPC)

The EPC is simply a rating and a property cannot “pass” or “fail”.

The EPC will show both the property’s current energy performance rating and potential rating if the cost effective recommendations were implemented. However there is no requirement for the recommendations to be implemented.

It is expected that once the public become educated on the subject, EPCs and energy performance will be used in the decision making process when choosing a property.

The Inspection

The Inspection will focus on:

• The Property - Type, age and construction.
• Insulation – Walls and roof-space.
• Heating systems - Type, age, efficiency and controls.
• Hot water system - Type, age, insulation and controls.
• Fixed Lighting - Number of low energy light bulbs in fittings.
• Windows - Number, type, age, double glazed?
• Energy Sources - Gas, electric, coal, oil, solar, etc.
• Heat loss perimeter – Length.
• Extensions - Number of, construction date, insulation.
• Rooms in roof - Floor area, construction date.
• Conservatories - are they separated from the main dwelling by external doors?
• Roof construction.

The site inspection usually takes less than two hours and is non-invasive meaning no furniture or carpets etc. need to be moved.

Cost of EPC through Northgate Domestic Energy Assessor is £75inc VAT

contact us today to arrange your EPC. 01325 285360