Mandatory Energy Performance Certificates

From 1st October 2008, landlords are required to provide Energy Performance Certificates (EPCs) for new lets in the private-rented and affordable housing sectors. There is already a duty on sellers to provide them as part of the Home Information Pack.

EPCs are like the labels provided with all new domestic appliances and record how energy efficient a property is. The certificate will rate the energy efficiency of a building from A to G, with A being very efficient and G very inefficient.

Certificates will remain valid for up to 10 years, and if a valid EPC exists when changing tenants, no new certificate will be required. A good energy rating can make it easier to help rent out your property. They indicate to a prospective tenant how energy efficient your home is. It should also provide information that may help to reduce the running cost of the property.

Certificates are obtained by arranging an inspection and assessment by qualified assessors known as Domestic Energy Assessors. It is predicted that an EPC for an 'average' home will cost around £100. Assessors must be qualified and accredited through one of a number of Accredited Schemes. Assessors can be found through local business listings or through a |national database.

If your home gets a low rating, this indicates your home could be more energy efficient. During the inspection a number of recommendations to improve energy efficiency will be made and if introduced these could improve the rating and save money on energy bills. It is up to you whether you implement the recommendations or not.

If you are a landlord who rents rooms out, then you will most likely not need to provide EPCs for new lets of rooms, or rooms in houses of multiple occupation.

More |guidance is available on this subject from the Government.

For further advice, contact the |Councils Private Sector Housing Team.

Did you know about ...?

• Landlord's Energy Saving Allowance (LESA)
  Under section 312, Income Tax (Trading and Other Income) Act 2005 (ITTOIA), landlords who pay income tax may claim a deduction, the LESA, against profits for expenditure to install loft insulation or cavity wall insulation in a dwelling house which they let. This was extended to cover solid wall insulation in regulations made in 2005 (the Energy-Saving Items Regulations 2005 Statutory Instrument 2005/1114). The maximum amount which may be claimed is limited to £1,500 per building.
  
  
• The Enhanced Capital Allowance (ECA)
  This allowance can be claimed by landlords that pay corporation tax, larger landlords and businesses. In practice this provides the landlord with the opportunity to claim back 100% of the tax back on any energy saving technology that they buy. For further information visit the Government's |Enhanced Capital Allowance website.