| There have been discussions and proposals for some | | | | provided to existing tenants. |
| time to introduce mandatory energy ratings of | | | | EPCs are very similar in design to the certificates |
| homes. This is now being applied across all European | | | | provided with domestic appliances such as |
| Union countries pursuant to the European Directive | | | | refrigerators and washing machines. Their purpose is |
| for the Energy Performance of Buildings, designed to | | | | to record how energy-efficient a property is as a |
| improve property efficiency. In England and Wales, | | | | building. The certificate will provide a rating of the |
| Energy Performance Certificates (EPC) were initially | | | | property from A to G, where A is very efficient and |
| introduced as part of the Home Information Packs | | | | G is very inefficient. There are two ratings, the |
| required when selling properties. With effect from 1 | | | | environmental impact rating and the energy-efficiency |
| October 2008, this was extended to rented | | | | rating. The environmental rating is a measure of a |
| properties. | | | | home's impact on the environment in terms of |
| Landlords will now need to provide an EPC free of | | | | carbon dioxide (C02) emissions - the higher the rating, |
| charge to all prospective tenants at the earliest | | | | the less impact it has on the environment. The |
| opportunity and no later than: | | | | energy-efficiency rating is a measure of a home's |
| - when any written information about the building is | | | | overall energy efficiency. The higher the rating, the |
| provided in response to a request for information | | | | more energy-efficient the home is, and the lower the |
| received from the prospective tenant, or | | | | fuel bills are likely to be. |
| - when a viewing is conducted, or | | | | Current running costs for heating, hot water and |
| - if neither of those occur, before entering into a | | | | lighting will also be shown on the certificate, together |
| contract to let. | | | | with a list of recommended energy saving |
| An EPC does not have to be made available if: | | | | improvements, which, if taken up, will mean lower |
| - the seller believes that the prospective tenant is | | | | energy bills for your tenants. According to |
| unlikely to have sufficient funds to rent the property, | | | | Government figures it may be possible to enjoy fuel |
| or | | | | savings of up to £300 a year or more. Energy |
| - is not genuinely interested in renting that type of | | | | efficient homes are much more attractive to |
| property, or | | | | potential tenants (who may be prepared to pay a |
| - the landlord is unlikely to be prepared to rent out | | | | higher rent), both because of the lower running costs |
| the property to the prospective tenant (but be sure | | | | and because many tenants nowadays are keen to |
| if relying on this, that your reason is not a | | | | reduce their carbon footprint. |
| discriminatory one). | | | | Note that there are grants available for some types |
| EPCs, which must be obtained from an accredited | | | | of energy efficient improvement work and you may |
| energy assessor, are valid for 10 years and do not | | | | be able to claim a discount on your income tax bill |
| have to be re-commissioned every time the property | | | | under the Landlords Energy Saving Allowance. |
| is re let (although you may want to if you have | | | | Failure to provide an EPC is punishable by a penalty |
| carried out works which will improve the energy | | | | charge notice, issued by Trading Standards, carrying |
| efficiency of the property). They do not have to be | | | | a fine of £200. |