The Energy Performance Certificate Explained!

As of the October 1st 2008 Landlords must provide an Energy Performance Certificate (EPC) whenever a new tenancy starts.

Landlords will need to be able to provide the EPC to prospective tenants before the tenancy agreement is signed. In effect this means that they need to have organised the certificate well in advance.

An EPC must be produced on all residential properties that are for sale or rental from the 1st October 2008. An important thing for Landlords of student accommodation, to keep in mind, is that, even if you don’t plan to rent out the property until next summer, it is still advisable to organise it early, since students often view properties early and they will be entitled to request and view the EPC.

Properties that are already for sale before the 1st can remain on the market; however, an EPC needs to have been ordered.

What is an Energy Performance Certificate?

The EPC is similar (in a broad sense) to certificates that you might find on some domestic appliances.

In essence they tell you how energy efficient at particular property is, on a scale of A-G. The way the scale works is that the most efficient homes – which in theory should have the lowest fuel bills – are in band A.

The Certificate also spells out on a scale of A-G, the impact the property has on the environment. The theory behind it is that better rated properties should have less impact on the environment through things like carbon dioxide emissions.

If your property is rated between D-E for either or both of the above scales, don't start to panic yet, because these are thought to be the average ratings, that will be expected, for properties in the UK, at this current time.

The EPC will also give recommendations on ways to improve the properties energy efficiency. However, you do not have to follow the recommendations.

If you understand this concept you will begin to understand that in the future many people may use their certificate as a way to up the price or as a clincher to the sale of a property, or the buyer might use it as a way to try and negotiate a lower price.

Whether in practise these new types of negotiations will actually happen, it is difficult to say; however, in a World that is being forced to be more environmentally conscious, one can only hazard a guess that the importance of this little certificate will only grow not diminish.

Where do You Get an Energy Performance Certificate From?

The most important thing to keep in mind is that EPC’s can only be done by trainied and accredited Domestic Energy Assessors (DEA’s).

There are many places you can get a certificate. If you do a search on google, it will bring up countless companies that have sprung up to meet the expected demand; however, the Residential Landlords Association (RLA) - which is about as trustworthy an organisation as you are going to find – at the time of writing do some reasonable deals.

Currently the RLA offer it’s members an EPC service at £55 for up to 5 bedrooms and £65 for up to 6-8 bedrooms. Non-member prices at the time of writing are: £65 for up to 5 bedrooms and £75 for up to 6-8 bedrooms.

You risk getting a £200 fine by a local trading standards officer if you do not comply with the new rules regarding EPC's

How Long Does and EPC last?

An Energy Performance Certificate, on a rental property, will last for 10 years.

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