ENERGY PERFORMANCE CERTIFICATES

From 1st October 2008, any private landlord renting out his property to a new tenant will need an Energy Performance Certificate (EPC) for the property.

The EPC is based upon an assessment of the property and must be carried out by a trained Domestic Energy Assessor.

The EPC for rented properties will remain valid for up to 10 years. After this period expires there will be no immediate need to obtain a new certificate for an existing tenancy but a new certificate will be required when searching for a new tenant. It will then be available to any prospective tenant who wishes to view it. It is required to be in place, or at least commissioned, before viewings can be conducted or even any written information regarding the property can be sent out.

Each property is assigned its own Energy Efficiency and Environmental Impact Rating. This rating is marked out of 100 but more easily recognised as a sliding scale from A to G. The average rating for a property in the UK is between D and E in both bands.

The Energy Efficiency Rating provides an indication of a property’s energy efficiency. In basic terms this consists of insulation values, the heating systems present and heat loss from the property. The higher the rating means the lower the fuel costs to heat the home.

The Environmental Impact Rating is an assessment of the property’s impact on the environment. It produces this by calculating how much COS (carbon dioxide) the property would produce on average in a year. The lower the rating the more impact it has on the environment and the more carbon dioxide produced.

Another important part of the EPC is the recommendations to improve the rating of the property. They are split up in to three sections. Lower cost measures, for improvements up to £500, higher cost measures, for improvements over £500 and further measures. These recommendations are designed to cut fuel bills and carbon dioxide emissions from the property.

The energy assessment itself should take between 30 minutes to an hour to complete. This will depend on the size and complexity of the property. The assessor will require access to all of the rooms in the property, heating systems and the loft space if applicable. All assessors should bring their own equipment to conduct the assessment so the tenant will not need to provide anything. Documentation regarding the installation of any extra insulation or the fitting of the heating systems may aid the assessor but is not essential for the assessment.

The assessor will record details about the construction, insulation and heating systems throughout the property. These key points will make the greatest difference to the assessment. He will also study the windows, lighting, and heating controls to produce an accurate representation of the property.

The energy rating may help rent out your property. They indicate to a prospective tenant how energy efficient your home is. A property with a high energy efficiency rating will clearly become a more desirable proposition to any prospective tenant. The promise of lower gas and electric bills will be a considerable part of this. With the introduction of EPC’s allowing prospective tenants to see the potential domestic energy bills, they will be able to compare it between several different properties. They will then be able to take this in to consideration and add it to the cost of the rent. More expensive properties with higher efficiencies will then become more desirable as the total cost per month, rent plus bills, may be cheaper than properties with a lower rent.

Any improvements made to the property, to increase the energy efficiency, will be highlighted in future EPCs. This means that the costs of the improvements can add value to the property and increase the price of any future sales or rental agreements.