New EPC rules as landlord of a listed property

Mr.Boy

Since this month, the new EPC rules say landlords must have an EPC rating of E or better for new tenancies. The EPC of my grade-II listed flat gives it an F with few options to improve since as a mid-floor flat the ceiling and floor are not factored in.

I'm pretty sure I can't do major works due to the listed status but I'm not sure to which central authority I make this case, or how. Or for that matter who I inform if I DID upgrade the property.

FYI it's an old granite house in a picturesque 13th century town, which was converted into flats and has single glazed windows.
The EPC report from buying the place (not knowing this rule was coming in) says new windows will hardly gain me any points, and strongly suggests cladding the walls. This would cost thousands and since inside I have period features I'm dubious it would be allowed.

G_M

You've had a long time to consider this and look into the options.

What has your Landlords Association advised? eg
https://www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml


See also:
http://www.landlordsguild.com/epc-minimum-energy-levels-explained/ :

Exemptions

National PRS Exemptions Register

There are a number of exemptions from having to achieve an E rating or better. But, in all cases, the property must then be registered on the National PRS Exemptions Register which will normally last for five years after which an attempt must again be made to bring the property up to the minimum rating.

This is a public database allowing enforcement authorities easy access to check whether a rented property has been placed on the register.

At the time of writing, the register is in pilot and anyone wishing to register their property should email [EMAIL="PRSregisteraccess@beis.gov.uk"]PRSregisteraccess@beis.gov.uk[/EMAIL]

Where all the relevant energy efficiency improvements for the property have been made (or there are none that can be made) and the property remains sub-standard

If all the recommendations shown on the EPC have been completed and the property still doesn't achieve the minimum rating, the property will be exempt and as such will need registering.

Mr.Boy

No I haven't... I bought it only a year ago and the first I heard about these rules was a letter from my estate agent in March telling me I had to rectify this by April or face a fine.

At no point in the purchase or renting process did anyone mention this new regulation and even in hindsight I cannot think of any way I would've found out as part of my due diligence. I own other rental properties and this has just never come up.

Those links look very useful and I'm going to ask our management company - who manage just the flats in this building - about it. I don't know the other landlords are aware at all!

G_M

=d000hg;74186408.........I cannot think of any way I would've found out as part of my due diligence....../

???? :eek:

As a landlord, it is common sense, and a legal obligation, to keep up to date with the relevant leglislation relating to your business. Just as small businesses had to adapt when the law made them offer pension schemes for employees. Ignorance is no excuse.

The change introduced this April came about as a result of The Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015 - plenty of time to become aware and prepare.

All the Landlords Associations publicised the change.

As did national papers (eg here).

The govenment also publicised details (see here).

And most decent letting agents (eg see here).

Not to mention forums like landlordzone, propertytribes, and, indeed, this one.

The fact that your estate agent (at purchase) and lettting agent (at lettting) did not inform you is no excuse - the ultimate respnsibility for ensuring your business complies with the law is yours.

In particular, the need for 'due diligence' in purchasing a listed building, especially with the intention of letting, was surely greater than in a purchase of a non-listed building.

When the ban on using mobile phones while driving came into force, I could not plead "But the car salesman never told me"!

Mr.Boy

Exactly. I didn't search on Google "are the rules on EPCs for landlords going to change" because - well, why would I? I also didn't think to check if I would legally have to send my tenants a Christmas card.

I have never seen anyone with a BTL mention this, or seen it on any forum or on the news. I had seen the rules about how BTL taxation was moving more and more to income not profit but not this. Mobile phone rules was headline news - this wasn't.

Maybe not too many properties are outside band E anyway these days. Sometimes these things just slip through the cracks, but the fact my agent sent me a letter 2 weeks before is kind of amusing.

Listed possibly is a get-out as if I can get the council to block my proposed changes, I'm covered. Kind of interesting the idea of deliberately trying to wind them up to refuse you
Or if the EPC reckons you can't get into E with the recommended steps, you don't have to.

00ec25

d000hg wrote: »

Exactly. I didn't search on Google "are the rules on EPCs for landlords going to change" because - well, why would I? I also didn't think to check if I would legally have to send my tenants a Christmas card.

I have never seen anyone with a BTL mention this, or seen it on any forum or on the news. I had seen the rules about how BTL taxation was moving more and more to income not profit but not this. Mobile phone rules was headline news - this wasn't.

sorry but that comes across as childish whining. As G_M shows above, it was widely publicised and your only failure is of your own due diligence in running your business.

AdrianC

d000hg wrote: »

Exactly. I didn't search on Google "are the rules on EPCs for landlords going to change" because - well, why would I?

Mmm. Why would you do basic research before investing heavily in a business venture?

I have never seen anyone with a BTL mention this, or seen it on any forum or on the news.

A very quick google finds this 2015 article...
https://elementsproperty.co.uk/energy-performance-certificates/7-things-you-need-to-know-about-the-2018-epc-changes/


Or this 2013 thread asking about rumoured changes...
https://forums.moneysavingexpert.com/discussion/4789123/property-with-very-low-actual-and-potential-epc-rating


As far as the listedness (is that a word?) goes, have you read this?
https://www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml

I had seen the rules about how BTL taxation was moving more and more to income not profit

You're going to have to explain that difference to me...

G_M

'Income' is money you receive (in return for work or investment or business etc.) and which you can spend (eg in shops or down the pub).

Whereas 'profit' is money you receive and which you can spend..... oh, errr.... well anyway if we go down the pub we could discuss this further over a pint (paid for out of[STRIKE] income[/STRIKE] profit).

Margot123

I'm really surprised that the OP wasn't aware of ALL the requirements of being a landlord.

If I were in that situation, I'd at least have Googled 'landlord's legal requirements'. EPCs would have been top of the list with it being such a hot topic for the past couple of years.

Even tenants are discussing it as a possible way of avoiding paying rent!

Ignorance is no defence, unfortunately.

00ec25

G_M wrote: »

Whereas 'profit' is money you receive and which you can spend..... oh, errr.... well anyway if we go down the pub we could discuss this further over a pint (paid for out of[STRIKE] income[/STRIKE] profit).

sadly I have clients who pay it out of income and then wonder why they are being taxed on their profits because they had already spent the money and so had no "profit" :money: