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Landlords Property EPC Energy Assessment and Energy Performance Certificates for Lettings

Landlords EPC - We examine the affects of the introduction of Landlord Energy Performance Certificates (EPC) and the introduction of EPC's and how it may affect the private owner or landlord who may provide rental property.

Lettings Energy Assessment of Rental Property

Energy Inspection, buildings inspection by an Energy Assessor, using RdSAP & SAP assessment procedures will commence from 1st October 2008. The Energy Surveyors are required to inspect rented property owned by Landlords and issue an EPC for private rented homes, Houses in Multiple Occupation (HMO's) and housing owned by RSL's (Registered Social Landlords). Property Lettings whereby the owner lets out their home to tenants will also require to obtain an EPC. A Landlord responsible for property lettings can apply for an EPC before this time. The cost of the Energy Performance Certificate must be paid by the landlord or property owner. The tenant does not bear the cost of the EPC, and can request to inspect the certificate prior to occupation, or during occupation of a tenancy agreement free of charge.

Certification will raise awareness of energy efficiency in the landlord & private investor property sector in a number of ways;

• The system will be visible, quantifiable and mandatory.

• The system will enhance transparency, and provide a benchmark for both building and end-user.

• The system will enable the energy efficiency of buildings to be compared.

These factors will change the view of investors in the commercial property sector, due to sustainability issues and costs of utilities to service those buildings. As sustainability issues rise up the corporate agenda and companies place greater emphasis on corporate social responsibility policies, investors will question the environmental footprint of their property portfolios.

See also Social Housing.& Property Rental Energy Certificates.

An EPC provider can assist in the provision of energy inspection services and the issue of certificates for rented accommodation. Domestic Energy Assessors can issue an EPC for rented property, these can only be issued by an approved Energy Assessor

Investors will be keen to find energy efficient buildings due to the potential returns they offer. The most important factor is the threat to the value of an energy inefficient buildings due to accelerated obsolescence, considerable resources may be required to bring these properties up to the latest standards.

New Build homes for rent require Energy Assessment by an authorised energy inspector, refer to SAP Energy Assessors for further information.

Landlords may need to invest further cash resources to enhance their "unsustainable" assets in the market place. In this environment "sustainable" assets would be more liquid than their "unsustainable" counterparts. It is probable that a 2 tier market will develop, where energy efficiency will be considered as "prime space".  Eventually when buildings have been surveyed to determine their efficiency ratings and the data collated in a central database this information could be made available to property appraisers, i.e the Tenant.

However, as the demand for sustainable buildings expands, this may change in the longer term, it is possible that a significant adverse yield impact on energy inefficient buildings may become evident, as a result of lack of rental growth prospects. The legislative and social context for investing in commercial property is changing, and the introduction of the EU Directive (EPBD) represents just one area that will affect landlords, tenants and owners of property portfolios.

Tenants may take a keener interest in the energy rating of homes for let, in order to assess the potential energy usage of such buildings, a higher energy rating,  means lower fuel bills. Owners of rental property can find tips on improving energy ratings, please refer to Energy Saving Tips and Advice

Making EPCs available to prospective tenants
The EPC and recommendation report must be made available free of charge by the landlord to a prospective tenant at the earliest opportunity and no later than:

• when any written information about the building is provided in response to a request for information received from the prospective buyer; or

• when a viewing is conducted of the rental property; or

•  if neither of those occur, before entering into a contract to let the property.

An Energy Performance Certificate (EPC) does not have to be made available if:

• the landlord or his/her agent or representative believes that the prospective tenant is unlikely to have sufficient funds to rent the property or is not genuinely interested in renting that type of property; or

•  the landlord is unlikely to be prepared to rent out the property to the prospective tenant (although this does not authorise unlawful discrimination)

In order to assess a properties performance and gain an energy rating certificate, owners of rented property must enlist the services of an energy assessor who will conduct a survey using the full SAP methodology if required, some HMO's fall into this category. The inspector must be licensed and accredited by a professional body.

Further Reference:
Energy Ratings
Energy Assessment Ratings for New Build Property
Energy Assessment Ratings for Existing Property
Where can I find a Commercial Energy Assessor?
Training & Accreditation

Energy Performance Certificates (EPC) have the potential to change the private property market in a profound way. Shrewd investment in the current climate may well prove lucrative in tomorrow's future.

Owners of private rental premises will need to appoint a qualified energy assessor and obtain an Energy Performance Certificate (EPC)

Where buildings for mixed use (i.e. combining a dwelling and non-dwelling) is constructed, sold or rented out.

This should be treated as a single dwelling if the commercial part can be converted back to residential use and there is common access i.e. each part does not have a separate access (for example, where within a house a portion has been separated out as a workshop, office, surgery or other type of business)

For other cases, treat the dwelling and non-dwelling parts separately using the most appropriate energy rating methodology for each element. For example, if a building contains both flats and offices use SAP or RdSAP for the flat (i.e. a domestic energy assessor) and SBEM or DSM ( i.e. a commercial energy assessor) for the offices. A commercial energy assessor is more likely to be qualified to conduct an energy inspection of such a property, as it is possible that the accredited person is already qualified as a DEA - Domestic Energy Assessor.

Energy assessment of  property is already underway and the timetable for the deadline for EPC's has been established.

Commercial Energy Assessors Energy Performance Certificates EPC Property Inspectors DEC Providers- For commercial property inspectors, buildings inspectors, energy performance certificate DEC (EPC) providers.

Energy Performance Certificates (EPC) Domestic Energy Assessors - If you require a Rented Property EPC in Nottingham or a Landlords EPC in Nottingham or Nottinghamshire please contact us.