As those of you who already own rentable properties will be aware as from a few months back (1st October 2008) (Bonny Scotland 1st December 2008) landlords are now required to provide Energy Performance Certificates (EPCs) for their properties inclusive of Houses of Multiple Occupation (HMOs).
This being a requirement of the Energy Performance of Buildings Regulations 2007 with the result that both landlords and tenants will have more information about how energy efficient the property that they are either letting (landlord) or renting (tenant) is.
So what exactly constitutes an Energy Performance Certificate (EPC)?
Well each EPC is required to have three parts:
- The Energy Efficiency Rating which relates to the running costs of the property.
- The Environmental Impact Rating that relates to the carbon dioxide emissions from the property
- Finally the Recommendation report which provides the information on that which the landlord (or tenant) could do to improve the rating of the property.
It is worth noting that as Landlords you are not required to act upon that advice although clearly there will be recommendations where it would be in your best interests to do so.
People have got very excited about these EPCs but simply look at the back of your own domestic household appliances i.e. fridges, freezers and washing machines and you will see these there. Exactly the same rating system is used where an ‘A’ rating is the most energy efficient and ‘G’ is the least energy efficient. The average property is currently rated ‘D’.
The Energy Performance Assessment comprises an inspection of the whole property including any loft areas and basements, inside and out, together with measurements of room sizes and photographs of key elements. For the most accurate assessment the following details will be required:
- Age of the property
- Model number of the central heating boiler (if any)
- Documentary evidence of any improvements to the property such as double glazing, wall or roof insulation.
- Evidence of date and construction methods for extensions/conservatories/re-built areas of the property.
Where all this information is not readily available or indeed if no access is possible to parts of the property (e.g. the loft) the assessment can still be carried out, but assumptions may have to be made to allow an estimate of certain elements.
Now that you are aware what an EPC comprises – which Houses of Multiple Occupation (HMOs) require an EPC?
There has been an element of initial confusion surrounding this issue and the most up to date guidance comes from Communities and Local Government.
The current status is as follows
Landlords who have an HMO, with shared essential facilities (bathroom, shower, toilet and/ or kitchen) and who have individual tenancy agreements with their tenants do not need to provide an EPC unless they sell the house or let it as one whole dwelling, or convert it to self-contained units.
A mixed property with shared and self-contained units will require EPCs for the parts that are wholly self-contained.
Landlords of completely self-contained flats and those who let houses to a group of sharers (with one contract between all of the occupiers) do need to provide an EPC when they let to new tenants after 1st October 2008 or in Scotland 1st December 2008.
It is ironic that energy performance certificates will accordingly not be required for most HMOs. given the prevalence of HMOs in older housing stock with typically poorer inherent energy performance. It is unlikely, therefore that EPCs will have the impact needed to assist vulnerable occupiers of HMOs who are often least able to choose their accommodation.
An EPC when issued lasts for 10 years. As a landlord you do not need to get a new one for each new let, the same one can be re-used. Where changes are carried out to the property which may affect / improve the energy performance such as an extension, loft conversion, new double glazing etc, a new EPC may be commissioned.
Right guys – you now know what they are, where you need one for your HMOs and how long they last.
As in all aspects of the property business the best advice I can give is that you do not need to know everything but you need to know a man that can. In this instance you require an accredited assessor you will find one below.
http://www.epcregister.com
My advice if you have a large portfolio is to shop around for competitive quotes as several Valuation Surveyors have started to offer this service.
