Energy Performance Certificates (EPC) From October 2008 Energy Performance Certificates will be added to the documentation landlords will be required to provide tenants.

Some landlords may be entitled to a financial incentive in the form of an energy saving allowance to move their properties up the performance scale, To find out if you may be entitled to a grant we would suggest you contact your local Town Council and/or the H.M. Revenue & Customs websites.

The certificates (‘EPCs’) will have to be provided free either when (or before) any written information about the property is provided to prospective tenants or a viewing is conducted. They will not have to be provided if the landlord believes the prospective tenant is unlikely to have sufficient funds to rent the property or is not genuinely interested in renting, or the landlord is unlikely to be prepared to rent the property to the prospective tenant.

A new certificate will not be required on each let since, in the case of rental property, EPCs will be valid for 10 years and will cost in the region of £75.00 (Possibly Less)

The requirement is being introduced to comply with the EU’s Energy Performance of Buildings Directive (EPBD) which applies to all property, including rented property. This became law in 2003 and allowed until January 2009 for full implementation so as to provide time for sufficient numbers of energy assessor to be trained.

EPCs for dwellings will rate the energy performance of buildings (not the appliances within them) on a scale of ‘A’ to ‘G’ – where ‘A’ is the most efficient, and ‘G’ the least. This will be displayed graphically in a similar way as present energy labelling on white goods such as fridges and washing machines.

Two ratings will be shown: an overall energy efficiency rating, and an environmental impact rating in terms of carbon dioxide (CO2) emissions – the higher the rating, the less impact on the environment.

The idea is that because EPCs will be prepared using standard methods with standard assumptions, it will be possible to make comparisons of the energy efficiency of buildings. The Government argues that in the case of rental properties, high rating will be more desirable and will impact on the marketability of properties – and hence ultimately on rent levels.

EPCs will always be accompanied by a recommendation report including a list of measures (such as low and zero carbon generating systems) that would improve the energy rating of the building and an indication of the rating that could potentially be reached should these recommendations be implemented.

ECPs may only be produced by authorised Domestic Energy Assessors (DEAs) who have been able to demonstrate appropriate qualifications or competence. Landlords wishing to make energy saving improvements to their properties either before or after obtaining an EPC may be offered some help from the Government.

The Landlord’s Energy Saving Allowance, originally introduced in April 2004, now covers loft insulation, cavity wall insulation, solid wall insulation, draught proofing, hot water system insulation, and floor insulation.

Expenditure on these items would otherwise be treated as capital expenditure – which means it could not be deducted from rental income to arrive at a taxable item. However, the LESA allows up to £1,500 per property spend on such items as a straight deduction from rental profits. Further details are on the Inland Revenue website.

We are able to assist you in arranging for your EPC to be compiled. Please discuss with us and we will be able to give you up to date pricing.