Energy Performance Certificates

scrummy_mummy_2

I've just received this quarter's NLA Landlord's newsletter....I know it's winter and I am blaming it on my hibernation, but what the heck is this new flippin instruction that all Landlords have to have their rental properties assessed for their energy efficiency properties from October 2008????

Anyone know more details? I've checked the members area on the NLA website and can't (easily) see any more about if it is a new legal requirement or how we are supposed to get one done, or how much it will cost?

adr0ck

yes legal requirement later this year (last 10 years though)

more info here

http://www.financedaily.co.uk/showNews.aspx?loadid=00899

subjecttocontract

I have a number of rental properties which are leasehold and in a block with other flats.

1. I don't own the roof so can't insulate it.
2. I don't own the building so can't insulate the cavities.
3. I'm not allowed to install gas appliances so can't improve with a condensing boiler.
4. I'm reliant on my freeholder/ service charge company to insulate everything except the windows......and they are already double glazed.
5. Tenants are more interested in location, size and monthly rent than energy performance.

Whats the point of an EPC for me

Gingernutmeg

subjecttocontract wrote: »

5. Tenants are more interested in location, size and monthly rent than energy performance.

As a tenant who lives in a freezing house that's impossible to heat, and as someone who's facing huge increases in my energy bills, believe me, I am interested in finding out whether the property I rent is energy efficient. It would be a deciding factor in whether I choose to rent a property or not.

scrummy_mummy_2

adr0ck wrote: »

yes legal requirement later this year (last 10 years though)

more info here

http://www.financedaily.co.uk/showNews.aspx?loadid=00899

Cheers, found that link surfing...however, it doesn't clearly state how much a certificate is likely to be, whom/what body is authorised/certified to carry them out and if there are any penalties for non compliance.....not entirely sure this certification is actual legislation YET?????? or is it just the threat of legislation?
Even if it is a legislation requirement I won't be making any 'identified improvements' to the houses any time soon cos they're not compulsory and don't make good/real business sense (so that kinda makes the legislation pointless!)...the certification costs might be £600 off my bottom line in one fiscal alone....even if I only have to improve loft insulation at a cost of £800 per property that's £2400 also off my bottom line, totalling £3000 in one year....I could afford to drop the rents by £100 a month PER PROPERTY and still wouldn't cost as much as some fluffy loft paper! (Don't care I can claim some of it back off my income tax!)
Can't see any sensible tenant turning down a house over £100 a month below the competitor properties on a 10 year old, very well maintained home in the South East! just because it doesn't have an insulated loft!

In my circumstances, I shall resist this as long as I can. I shall not be first in the queue to be fleeced....although maybe I should be, I could use it to insulate the lofts!
I shall concentrate my efforts on making sure my tenants are safe, happy, pay an already reduced rent, can treat the hoses as their homes, can keep pets and kids without penalty, their rooves don't leak, their boilers work, they are covered by the TDS and can park their gas guzzling cars in their allocated parking spaces without the threat of harrassment. I shall continue to pay my mortgages on their homes so they can feel secure from eviction and won't be asking them to allow me access to their home so a stranger can poke around and tell me (subjectively) that the house is using 2KWhr more electricity than it should be.
I've done this 'energy performance' exercise on my own home and it would take me 15 years to recover the costs of the heat loss through my own roof by upgrading my loft insulation to the modern required depth, even with the rising cost of energy.
If the Government were that concerned about the impact of us all heating the atmosphere to 400 degrees Kelvin they'd give it us for free OR MAKE THE BLINKIN BUILDERS BUILD THE HOUSES 'CORRECTLY' IN THE FIRST BLINKIN PLACE!
Idiocy in the extreme.
Rant over.

Gingernutmeg

But would you drop the price of your rentals by £100pcm? (Not being sarky here, I'm curious ) I would definitely look at energy efficiency ratings when I'm looking at renting a flat, and yes, while I'd choose a cheaper, less efficient property over a more expensive, more efficient one (the difference in rent would cover my utility bills), I can't see many landlords, especially in the South East, dropping the rent to cover the expense to the tenant due to energy inefficiency. So, assuming that landlords don't drop the rent, then I would definitely go for a more efficient property. I suppose it makes a difference if you live in an area with a wide variety of rental properties, but where I live rentals are all much of a muchness (maisonettes and new build flats), so a good energy performance rating would influence my choice, especially if gas/electricity keeps on rising.

I do approve of this scheme, but, like a lot of these ideas, I can't see it being of any practical use. Realistically, it's not going to make much difference to the tenants if there's no legal obligation to do anything. I agree though that it's another legislation that's going to affect decent landlords disproportionately, as the landlords renting out the most inefficient/least maintained properties aren't likely to do anything about it, and aren't likely to have the kind of tenants who are in a position to complain ...

subjecttocontract

Gingernutmeg wrote: »

As a tenant who lives in a freezing house that's impossible to heat, and as someone who's facing huge increases in my energy bills, believe me, I am interested in finding out whether the property I rent is energy efficient. It would be a deciding factor in whether I choose to rent a property or not.

There are always exceptions to any rule.....you appear to be the exception.

I've been renting various properties for 9 years and had more than a hundred tenants.....never once has anyone asked about energy performance/ consumption, cost of heating or insulation values.

scrummy_mummy_2

Gingernutmeg wrote: »

But would you drop the price of your rentals by £100pcm? ...

I won't need to....I think landlords will just pass any additional costs incurred by this madness onto tenants anyway, as they always do! so market asking prices will rise...I will just 'stand still' and the market will do the 'rising' for me. I have already seen asking prices rise by £25 to £50 a month in the last 6 months, so my rental costs are already £25 to £50 below the norm. My houses are on premium developments where demand is unusually high because of it's location and prestige/reputation. They are well maintained and all appliances are serviced and maintained regularly and all repairs carried out promptly and by tradesmen where appropriate. I am aware this sounds arrogant but I don't think it will catch me because I can afford to do 'nothing'...and to be fair, there is no REAL NEED...if I was going to spend money on the houses I'd replace the kitchen or istall a steam shower cubicle...either way, I will raise my rents!

Besides...even if I was to 'improve' as a result of an inspection...how many people are then going to pay another (possible £200) to be reinspected and get a 'better' certification???

In the end, it is the tenants who will inevitably bear the costs of this strategy in their rental costs.....and tradesmen who will benefit twice....build a rubbish house then fleece the purchaser to do it properly!

scrummy_mummy_2

subjecttocontract wrote: »

There are always exceptions to any rule.....you appear to be the exception.

I've been renting various properties for 9 years and had more than a hundred tenants.....never once has anyone asked about energy performance/ consumption, cost of heating or insulation values.

Me neither, they are more interested in clean carpets, clean bathrooms, modern up to date appliances and assurity that any problems will be rectified promptly and with minimal impact to their lives.

chappers

Have to agree with Scrummy mummy on this one and have to tell you ginge it won't actually have any effect what so ever you will still have the same choice of housing. this might sound selfish but I can't see any landlord (myself included) upgrading their property based on this certificate.
I assume it will be the same certificate as per HIPs basically a predetermined enery rating dependant on your location, type of house etc with afew extra comments thrown in pertinant to your particular property.
When renting or buying a house you don't need a certificate from someone who has been on a quick course to tell you that a house with double glazing, cavity insulation,loft insulation etc is going to be more energy efficient than one with rattly windows and no insulation as to the enery saved by the boiler, well to the costs of running a house leaving a door open for an extra five minutes a day probably negates that.
these certs are a waste of space, I might have some sympathy if the law stated that afull SAPs assesment had to be undertaken, but even that is not conclusive.
To be perfectly honest I'm getting pretty fed up that within the last couple of years you can't buy,sell or even look at something without being bombarded by the relevant energy efficiency/"green" aspects.
How about buying/renting a house because you like it or using which ever washing powder you want because it gets your clothes clean.

Bah humbug

TJ27

The government are extremely keen to highlight both energy efficiency and conservation of heat these days. I don't just mean from a global warming or carbon emmissions perspective either.

When assessing a rented property under the HHSRS for excessive cold virtually all are classified as a category one. I tried it stacks of times during my training. As such, upgrading of some sort is nearly always required. I understand the reason for this is that cold is the number one killer in rented properties. Apparently massively more people die from the cold than from fire, CO, falling downstairs, etc.

So if any tenants are feeling a bit chilly when the weather gets cold at the end of the week, just call the council and ask them to take a look. The chances are that your landlord will be told to improve things.