A law has been passed that from 1st October 2008, all new tenancies and re-lets in England and Wales will be required to have an Energy Performance Certificate (EPC).

What is an EPC?

An EPC is a certificate that tells the tenant about the energy performance characteristics of the property. This is shown by a chart ranking the property on a scale of A-G where A is the most efficient and G is the least efficient. The associated report details the measures that can be taken to make the property energy efficient by way of improvements. A copy of the EPC must be given to the tenant and must be shown to all prospective tenants during the marketing of the property.

How do I get an EPC?

This has to be provided by an accredited domestic energy assessor (DEA). Luff Associates have established an agreement with ThermaDetect Ltd to provide EPC’s at a competitive rate. ThermaDetect Ltd are a local independent company based in Camberley (www.thermadetect.co.uk) who will visit the property to assess its age, construction and how the installed characteristics e.g. heating system, installation and double glazing etc are rated against the scale. They will calculate the property ranking, register the EPC on the Government database and provide the EPC to the Landlord, normally within 48hrs.

When Do I Need to Get An EPC?

An EPC is valid for 10 years once it has been completed and can be reused as many times as required during this period. Therefore, to minimise the risk of not being able to place a tenant after 1st October it is advisable to have an EPC arranged as soon as possible. Luff Associates will be happy to arrange this on your behalf with ThermaDetect Ltd.

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The Landlords Guide to EPC’s

What is an EPC (in more detail)?

An EPC tells you how energy efficient your property is on a scale of A-G, with A being the most efficient. The certificate also tells you, on a scale of A-G, about the impact the property has on the environment. Better rated properties should have less impact on the environment. The EPC will make recommendations about how a property’s energy efficiency can be improved, in addition to a potential rating if the recommended work is carried out. The average property is rated D or E.

What is the benefit to me, the Landlord?

Prospective tenants will be able to see at a glance how energy efficient and environmentally friendly the properties they are considering renting are and will be able to make direct comparisons between those properties. If you as the Landlord have invested in energy saving measures your properties will perform well and standout from others. If they don’t stand out you may find them harder to rent out in the future. With today’s raising fuel bills this is likely to begin to become decision criteria.

Do I need an EPC if I have an existing tenant?

If you have an existing tenant you will not be required to obtain an EPC until that tenant leaves and the property is re-let. However, it is recommended, especially if you have a reasonably high turnover of tenants, that you don’t wait until you have a vacancy but you get an EPC in place before 1st October 2008. It lasts for 10 years!

When do the obligations for rented dwellings come into force?

1st October 2008.

Where does the 10 year validity period come from?

The requirement for an EPC is driven by the European Union legislation, which includes a provision that the validity period of EPCs should not exceed 10 years.

Can a landlord charge a tenant for the provision of an EPC?

It is not permitted for the landlord to charge for the provision of the original EPC. However it is permissible for a tenant who has already received the EPC to be charged for the provision of a copy document.

Is it possible to amend and update an EPC without the need to commission a new survey? A new EPC might be wanted, for example, if a replacement boiler is fitted.

DEA who issues the EPC would need to be satisfied that it accurately reflects the energy performance of the property. The DEA may be satisfied through means other than a full survey.

Who has access to the EPCs on the Domestic Register?

In broad terms, only an individual who has the unique reference number for the EPC in question has the right to access an EPC on the Domestic Register. However, the accreditation scheme responsible for the particular EPC, the enforcement authorities and, on an anonymised basis for research purposes, the Department for Communities and Local Government will also have access to EPC’s.

Is it possible to advertise a property before the EPC has been produced?

There may be occasions when it is possible to offer a dwelling for rent before the EPC is available. However this should not be the norm. The landlord will be expected to have made contact with a DEA and commissioned the EPC with a view to receiving it within two weeks of the date it was commissioned.

If an EPC is being produced when the dwelling is empty, what impact will occupying tenants have on the accuracy of the energy and environmental ratings?

The occupying tenant will have no impact on the EPC ratings, as these are produced using standardised occupancy data (i.e. number of occupants and hours of heating per day).

What if the tenant wants to buy the dwelling they already occupy? Can I use the same EPC as I used when they took the tenancy?

If the tenant wants to purchase the dwelling they rent, the same EPC can be used. This is because it is a non-marketed sale not affected by the HIPs Regulations. An EPC is required but this can be up to 10 years old. However, if the dwelling is also being placed on the open market, the EPC must be no more than 12 months old because it is affected by the HIPs Regulations.

Is an EPC needed if tenants are moving via a mutual exchange?

If advertised for exchange via a choice based lettings system, then an EPC will be required. If the exchange has been agreed privately than an EPC is not required.

What happens if I need to get an EPC to advertise the property, but I am going to improve before the new tenant moves in?

Either explain to the tenant that improvement works were carried out since commissioning the EPC and so the dwelling’s energy efficiency rating may now have changed, or commission another EPC after completion of the improvements.

Is an EPC required under a long term Regulated tenancy where a tenant dies and a partner, member of their family or other individual is able to succeed to the tenancy under the Rent Act 1977?

Under such circumstances an EPC is not required.

For any other questions, please do not hesitate to call us on 01276 64881.

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