Letting a period property with EPC rating F - UPDATE now rated D59

The_Logans · 27 March 2017 at 9:24AM

Hi,
We are letting our period cottage (built in 1850). I am concerned about the coming rules regarding it becoming unlawful from April 2018 to let a property with an EPC rating of F or G. Ours is currently rated an 'F'. We have insulated the loft, and replaced and insulated the flat roof portion of the house - the energy assessor wouldn't take those into consideration as he couldn't see them. We have 16 solar panels and a new boiler. The EPC recommends wall insulation (not really practical due to the age of the house and the solid wall construction) or floor insulation (suspended floor - I'm not quite sure what this means). It's not listed, so it won't be exempt from that perspective. Is anyone 'in the know' about these new rules? There must be an awful lot of properties out there like ours.

AdrianC · 27 March 2017 at 9:40AM

The_Logans wrote: »

We have insulated the loft, and replaced and insulated the flat roof portion of the house - the energy assessor wouldn't take those into consideration as he couldn't see them.

He's correct to do that. Can you provide any other evidence that that work was done?

...floor insulation (suspended floor - I'm not quite sure what this means).

Your current floor is laid straight onto the ground. A suspended floor is built on top of the ground or the current floor, with insulation between the two.

It's not listed, so it won't be exempt from that perspective. Is anyone 'in the know' about these new rules? There must be an awful lot of properties out there like ours.

There's quite a few. The simple answer is that you won't be legally able to continue to let it - so it's time to sell it... If you wish to continue your business activities, then take that sale money and buy one or more more modern, more energy-efficient properties instead. You'll almost certainly find your return increased.

Cakeguts · 27 March 2017 at 10:01AM

This is one of those properties that an owner would be quite happy to live in but which is totally unsuitable as a rental property. If you want to get into the business of letting you need to have a property that is what tenants want and that meets the rules on energy efficiency if not you will either have to leave it vacant or sell it. The sensible thing would be to sell it.

The_Logans · 27 March 2017 at 10:06AM

Cakeguts wrote: »

This is one of those properties that an owner would be quite happy to live in but which is totally unsuitable as a rental property. If you want to get into the business of letting you need to have a property that is what tenants want and that meets the rules on energy efficiency if not you will either have to leave it vacant or sell it. The sensible thing would be to sell it.

We do have tenants that want it, and continue to do so, and yes it would be sensible to sell it however they are in it for the next 12 months. I'm working on getting the EPC up to an 'E' based on evidence of the work done on the insulation.

Fosterdog · 27 March 2017 at 10:12AM

Is there any chance that your tenants would consider buying it if they are happy there and like the house?

I don't get why the assessor didn't just check the loft insulation though, they did in my last two rented homes and in the house I've just bought when they've EPC scored, is it common practice to not check?

You can get the insulation that goes on the outside of solid walls, one of my neighbours had it done last year and a friend the year before. I'm waiting to see how they find it before investing in it myself.

Cakeguts · 27 March 2017 at 10:15AM

You could ask the tenants if they would like to buy it. Wall insulation can be installed on the inside of the walls.

The_Logans · 27 March 2017 at 10:17AM

Fosterdog wrote: »

Is there any chance that your tenants would consider buying it if they are happy there and like the house?

I don't get why the assessor didn't just check the loft insulation though, they did in my last two rented homes and in the house I've just bought when they've EPC scored, is it common practice to not check?

You can get the insulation that goes on the outside of solid walls, one of my neighbours had it done last year and a friend the year before. I'm waiting to see how they find it before investing in it myself.

Yes the tenants might buy it, but are not in a position to at the moment. They do love the house and the area, but fairly recently became self-employed so are not in a good position to get a decent mortgage until they have more history.

I've gone back to the assessor to ask what he would need to see to take the insulation work into account. Hopefully for the flat roof part just the completion certificate will do but we'll see.

G_M · 27 March 2017 at 10:22AM

As I understood your post, you currently have a suspended floor: is that correct?

A suspended floor is (usually) wooden floorboards. For obvious reasons (damp penetration) these cannot be laid directly on the ground. Normally supporting joists are laid across brick or stone pillars on the ground, with the floorboards laid across the joiss (ie 'suspended' above the ground).

The floorboards can be lifted, and insulation laid beneath them, (also suspended by the joists and held in place by some suitable material).

Your 'F' rating just shows how meaningless the EPC system is.

To improve the rating you could
* insulate the floorboards
* insulate the solid walls, either externally (probably nor practicable and certainly not aesthetically pleasing!) or internally (you'd lose some minimal room size)
* provide documentary evidence of the roof insulation to the next assessor (though I'm not sure his 'tick-box process' permits him to accept this - it's a barmy system!)
* change all light bulbs to energy saving (and then change back after the assessor has left if you wish)

I agree with cakeguts that period cottages are not ideal for a letting business. Inevitably there is more maintenance (and hence complaints from tenants) than from a modern property. As in your case (I suspect), it's is usually an owner's home that is being subsequently let out, rather than a purchase planned for letting from the start. The inevitable emotional attachment to a former home (especially if the owner plans to return at some stage) is another reason not to let it.

You could cost out the above improvements, and research how EPC ratings are evaluated* to identify any others, and then decide if it's worth the expense, bearing in mind there is no firm guarantee you would ultimately achive the required rating.

For more on the SAP points system used, see

http://www.energykey.co.uk/epc.html

http://www.wmepc.co.uk/PDF/EPC%20Explained%20Final%2018%20July%2011.pdf

The_Logans · 27 March 2017 at 10:46AM

G_M wrote: »

As I understood your post, you currently have a suspended floor: is that correct?

A suspended floor is (usually) wooden floorboards. For obvious reasons (damp penetration) these cannot be laid directly on the ground. Normally supporting joists are laid across brick or stone pillars on the ground, with the floorboards laid across the joiss (ie 'suspended' above the ground).

The floorboards can be lifted, and insulation laid beneath them, (also suspended by the joists and held in place by some suitable material).

Your 'F' rating just shows how meaningless the EPC system is.

To improve the rating you could
* insulate the floorboards
* insulate the solid walls, either externally (probably nor practicable and certainly not aesthetically pleasing!) or internally (you'd lose some minimal room size)
* provide documentary evidence of the roof insulation to the next assessor (though I'm not sure his 'tick-box process' permits him to accept this - it's a barmy system!)
* change all light bulbs to energy saving (and then change back after the assessor has left if you wish)

I agree with cakeguts that period cottages are not ideal for a letting business. Inevitably there is more maintenance (and hence complaints from tenants) than from a modern property. As in your case (I suspect), it's is usually an owner's home that is being subsequently let out, rather than a purchase planned for letting from the start. The inevitable emotional attachment to a former home (especially if the owner plans to return at some stage) is another reason not to let it.

You could cost out the above improvements, and research how EPC ratings are evaluated* to identify any others, and then decide if it's worth the expense, bearing in mind there is no firm guarantee you would ultimately achive the required rating.

For more on the SAP points system used, see

http://www.energykey.co.uk/epc.html

http://www.wmepc.co.uk/PDF/EPC%20Explained%20Final%2018%20July%2011.pdf

Thank you G_M, as always you are a font of all knowledge! You are correct that the house was our family home which we have subsequently let out.

The lightbulbs I can get on board with - the rest is a bit more involved! Not sure our tenants would relish the idea of the floors being lifted and them having to move out all their stuff for very little benefit to them. Apparently we may be granted an exemption if current tenants refuse permission for the improvement works to be carried out. We have a very good relationship with them so that might be the easiest answer!

AdrianC · 27 March 2017 at 10:47AM

Quick question for you...

How much are you willing to spend on this work?
How many months rental income is that?

glasgowdan · 27 March 2017 at 10:54AM

You don't lift all the floorboards to fit floor insulation if there's enough space for someone to crawl about under there.

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Letting a period property with EPC rating F - UPDATE now rated D59

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