Energy Performance Certificates - Are you prepared?

The latest requirement for landlords is to provide an Energy Performance Certificate for each property which they let from October 2008.

 What are Energy Performance Certificates? 

These certificates are for all buildings and will be required whenever a building is constucted, rented or sold. The Energy Performance Certificate (EPC) is broadly similar to the labels now provided with domestic appliances such as fridges and washing machines. It''s purpose is to record how energy efficient a property is as a building. The certificate will provide a rating of the energy efficiency and carbon emissions of a building from A to G, wher A is very efficient and G is very inefficient.

This in theory will allow prospective tenants to see information on the energy efficiency and carbon emissions from the property so they can consider energy efficiency and fuel costs before deciding whether to take on the tenancy.

An EPC is always accompanied by a recommendation report that lists cost effective and other measures (such as low and zero carbo generating systems) to improve the energy rating of the property. The certificate is also accompanied by information about the rating that could be achieved if all the recommendations were implemented. 

What do Energy Performance Certificates contain?

The EPC contains a mixture of information about the energy efficiency of a landlord''s residential investment property which is listed below the following headings:

Reference information - type of property etc

Estimated energy use

Energy Assessor details

Complaints

Energy Advice

Recommendation Report

When is an EPC needed? 

An EPC is required when a property is constructed, sold or rented out. It is valid for 10 years.

A landlord is responsible for ensuring that a valid EPC for their property is available for all prospective tenants from the 1st October 2008. The EPC and recommendation report must be made available free of charge by a landlord to a prospective tenant at the earliest opportunity and no later than - when any written information about the property is provided in response to a request for information received from the prospective tenant; or when a viewing is conducted; or if neither of these occur, before entering into a contract to let.

An EPC does not have to be made available if - the landlord believes that the prospective tenant is unlikely to have sufficient funds to ent the property or;  is not genuinely interested in renting the property; or the landlord is unlikely to be prepared to rent the property to the prospective tenant ( although this does not authorise unlawful discrimination).

 Where do I get one & what happens if I don''t have one?

 A landlord can only obtain an EPC from a licenced Domestic Energy Assessor (DEA). Because of the recent introduction of this legislation, there were initial concerns that there could have been a shortage of DEA, but as yet, this has not meterialised. However, landlords are advised not to wait until the last minute before 1st October deadline. Landlords can expect to pay between £60 - £100 for an EPC although Ark Property Management will be looking to recommend licenced DEA who can provide best value.

Landlords or their agents that don''t have a valid EPC risk being reported to the Local Trading Standards and also the Office of Fair Trading. Penalties include fines of up to £5,000 and loss of the right to operate.