The new EPC Rules What landlords need to know about energy performance certificates
Duncan Chambers enior Account Manager & ARLA Board Member Calum Brannan Landlord & CEO
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Minimum Energy Efficiency Standards - Quick Recap Properties rated at F and G on the current EPC cannot be let 1 April 2018 for renewals and new tenancies April 2020 for all tenancies Landlord exempt: If work cannot be fully funded by a government (or other) scheme If 3rd party consent cannot be obtained If the work required reduces a property value by > 5% If it s a short term lease Maximum fine of 5,000 (and property cannot be let)
What is an EPC? All domestic properties in the UK require an Energy Performance Certificate (EPC) when the property is: Built, sold, or rented An EPC is valid for ten years The EPC displays information about a property s energy usage The EPC applies a rating of A (the highest) to G (the lowest) The rating relates to the energy efficiency of that property, A being most efficient, G least efficient
Getting an EPC You should have ordered an EPC inspection before your property goes to market and then have it available within 7 days of it going up. There is a grace period of 21 days A qualified energy inspector will inspect the property and issue you with an EPC. An EPC is valid for 10 years, but you might decide you want to have it redone sooner if you made improvements to the property. higher EPC ratings can become a selling point to tenants
Increasing your EPC rating Change air source heat pumps. Add thermostat boilers, draught-proofing, ground source heat pumps, storage heaters or insulation for hot water cylinders. Replace any halogen or non-low energy light bulbs with a more efficient source such as LED. Install loft insulation and check your walls for cavities. Badly installed windows could account for 10% of the heat lost from a room.
Becoming compliant The landlord needs to ensure they are complaint by 1st April 2018. Compliant means: Having an EPC of E or above, or Obtaining an exemption where the property is a F or G Exemptions need to be formally registered at: https://prsregister.beis.gov.uk/ndsbeisui/used-service-before
Key Exemption The MEES legislation states that a landlord can be exempt if the work is going to cost them a single 1 i.e., if it cannot be fully funded the landlord doesn t have to do it The exemption should be proved through a Green Deal Assessment The main sources of funding (that the landlord needs to research): Green Deal ECO funding Other government or local authority schemes
Sources of Funding The scheme is setup to be cost neutral to the landlord Main sources of funding are: Energy Company Obligation Scheme (ECO) (cavity and loft insulation) https://www.ofgem.gov.uk/environmental-programmes/eco/about-eco-scheme Green Deal Scheme funds a variety of improvement measures you will need to be assessed for suitability https://www.gov.uk/green-deal-energy-saving-measures
What is the Green Deal? The idea is simple; install new green technology into your property with no up front costs You will pay back the costs through your energy bill over a period of time (between 12 and 25 years dependant on measure installed) The loan is property based and not individual it stays with the property
Penalties - starting from April 2018 Penalties will range up to 5,000 and will depend on the severity of the infringement. 1,000 for providing false or misleading information to the PRS Exemptions Register. 2,000 for failing to comply with a compliance notice from your local authority. 4,000 for renting out a non-compliant property for less than three months. 5,000 for renting out a non-compliant property for more than three months. Any time you re in contravention, the notice will be published so this is something which could not only hit your pocket but harm your reputation as a landlord.
Getting an EPC with No Agent Add-on on top of standard service If you don t have the time to deal with getting an EPC yourself, we will do it for you for 78 inc VAT You will receive notifications to let you know when your EPCs and gas safety certificates are about to expire. You can deal with the renewal process yourself, or we can do it for you.
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