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Energy Performance Certificates [EPCs] - what do they mean to Landlords?

29 January 2009

From the 1st October 2008 ALL Landlords renting out their properties MUST ensure that they have obtained an Energy Performance Certificate (“EPC”) for each of their properties. 

The requirement for properties to have an EPC issued was brought in by a European Directive on the “Energy Performance of Buildings (EPBD)” and Article 7 of the EPBD stipulates that any building which is sold, rented out or constructed must have an EPC whether it be commercial or residential property. 

The EPC must be issued by a qualified and accredited assessor in an independent manner.  As a Landlord you are free to seek accreditation for yourself and your employees and so become competent to certify your own properties.  If you use an independent energy assessor you must ensure that they are a current member of an accreditation scheme as this ensures that your assessor is operating to professional standards.  An EPC is only authentic if issued by an accredited Domestic Energy Assessor (DEA) and details of DEAs can be found at www.epcregister.com. 

Once issued each EPC has its own unique number and will be entered on to a national register by the assessor.  You can thereafter download further copies to provide to prospective or current tenants by using the reference number on the Certificate.

The purpose behind producing EPCs for rented properties is to provide tenants with information about the property; whether it has energy efficient heating and lighting systems and whether it has good ventilation and insulation so they can make an informed choice to reduce their energy bills and carbon emissions.  EPCs will allow tenants to choose their homes accordingly and, no doubt, in due course will make Landlords whose properties are not particularly energy efficient for today’s market, make improvements to ensure that they are still able to rent out their properties.

In relation to rented properties the important points for Landlords to be aware of are:

•Any property which is rented out on or after 1st October 2008 must have a valid EPC.  If a tenancy is being renewed after 1st October 2008 the existing tenant must be shown a valid EPC for that property.

•The EPC must be produced by an accredited assessor.

•The EPC must be available to be shown to a prospective tenant at the earliest opportunity which would be when a tenant first asks for written details about a property, when a tenant is shown round a property or when a contract is entered into. 

•Once issued an EPC is valid for 10 years.

•If an EPC is not available for production and a complaint is made to the Trading Standards department of a local authority, Trading Standards can impose a penalty charge on the Landlord of £200 for each breach.

Landlords do not have to make the EPC available if they genuinely believe that the prospective tenant does not have sufficient funds to rent the property or is not genuinely interested in renting that property or if the  Landlord considers he is unlikely to rent the property to that tenant.  However with regard to the third aspect the Landlord must be aware that he cannot and must not unlawfully discriminate against a tenant.  Provision of an EPC to all prospective tenants will avoid a question of unlawful discrimination against a tenant.

In conclusion all Landlords are advised to obtain an EPC for each property so that they are fully prepared for when they next rent out or renew a tenancy on their properties.  Obtaining an EPC at an early stage will highlight any issues or concerns with regard to the property and give the Landlord time to make any necessary changes or alterations.  This may involve replacing faulty or defective equipment or highlight older systems that simply require up-dating.  Dealing with these measures now will ensure Landlords continue to be able to rent out their properties in a market that is becoming more competitive and where tenants are increasingly becoming more aware of renting an energy efficient property with a view to reducing their energy bills.

For further information contact Sarah Woolnough.
 

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