Energy Performance Certificates: The Basics

1. Energy Performance Certificates: The Basics Inside Housing Solutions Ltd South Barn, Cowix Farm, Capel Road, Rusper, West Sussex RH12 4PY Tel: 01293 871107 info@insidehousingsolutions.com

2. What is an EPC? • Shows Energy Efficiency & Environmental Impact Ratings on a scale of A – G (like domestic white goods) • A = most energy efficient with lowest CO2 emissions, G = least • Includes recommendations which lists cost effective measures to improve energy ratings (no obligation for the Landlord to carry out any measures) • Theory = Potential Tenant can see just how much it is likely to cost to heat and run a house for a year

3. What is an EPC? • By 1st October, residential property MUST have a valid EPC when it is let • Must be carried out by an Accredited Domestic Energy Assessor – list of accredited assessors at http://www.hcrregister.com • Registered EPCs are held on a central register – access to register via the above site so long as you have the registration number of the EPC • Access to register also available to the accreditation scheme responsible for the particular EPC, the enforcement authorities and, on an anonymised basis, the DCLG • Valid for 10 years • Subsequent changes to property that affect energy efficiency, new EPC required prior to a new letting

4. Domestic Energy Assessors • Qualified • Accredited • Required to have Criminal Record Bureau checks • Work continually monitored • Independent

5. How is the EPC calculated? • Inspect all rooms • Take notes, photographs & measurements • Government approved procedure = Reduced Data Standard Assessment Procedure (RdSAP) • Based on the building itself • Age, size, type of construction, renovation or extension works carried out, services such as heating & lighting (makes assumptions on standard heating)

6. Understanding Running Costs • The estimated running costs on the EPC: • Are based on standard consumption (number of occupants and hours of heating per day) • Take into account costs for heating, hot water & lighting only & do not include the cost of appliances • Are based on average fuel prices current when the EPC was produced

7. How is the EPC Calculated? • Does not include use of domestic appliances and personal circumstances/occupation by an individual property occupier so that direct comparisons can be made between properties • Enter information into computer • Review result and produce certificate

8. What does an EPC look like?

9. EPC Graph

10. How much does an EPC cost? • Depends on who is carrying it out • Depends on the type of property • Depends on quantity • Prices can vary considerably • Average costs = £40 - £120 per unit so its worth shopping around

11. Legal Requirement • If you have a Tenant in place, you do NOT require an EPC • If you put in a new Tenant, you must have an EPC at the time you market the property to potential Tenants • When any Tenant moves in they must be given a copy (photocopy is ok). In an HMO, each Tenant will need a copy

12. Legal Requirement • An EPC must be provided (free of charge) to a potential Tenant or Buyer no later than: • When any written information about the building is provided in response to a request for information, or • When a viewing is conducted • If neither of these occur, before entering into a contract to let • If a property contains “self-contained units”, then each unit requires a separate EPC + one for the property overall

13. ‘Self Contained Unit’ • Self Contained Unit = does not share essential facilities such as a bathroom/shower room, wc or kitchen with any other unit, and that it has its own entrance, either from outside or through common parts, that is not through another dwelling

14. Legal Requirement • An EPC does not have to be made available if: • The Landlord believes that the prospective Tenant is unlikely to have sufficient funds to rent the property, or • Is not genuinely interested in the renting that type of property, or • The Landlord is unlikely to be prepared to rent out the property to the prospective Tenant although this does not authorise unlawful discrimination

15. Existing EPCs • If a Landlord already has an EPC for a property, for example because it was recently purchased and part of the Home Information Pack, this EPC can be used for the subsequent rental • EPCs are valid for 10 years & can be reused for new Tenants as many times as required within that period

16. Enforcement • Action by Trading Standards & the Office of Fair Trading • Penalty for not having an EPC when selling or letting a home = £200 (+ cost of getting an EPC) • Repeat offenders may be charged more than once

17. Improving the Energy Efficiency of your Rental Property • Quick Fixes • Replace light-bulbs with energy efficient ones (the bulbs in place on the day of the assessment are the ones that count) • If the hot water cylinder doesn’t have a jacket, add one

18. Improving the Energy Efficiency of your Rental Property • Landlords’ Energy Savings Allowance scheme (LESA) • £1500 per property • Allowance available to 2015 • In addition to the 10% allowance for wear & tear • Energy savings items included are: • Loft insulation • Cavity Wall insulation • Solid Wall insulation • Hot water system insulation • Draught proofing • Floor insulation

19. Improving the Energy Efficiency of your Rental Property • Enhanced Capital Allowance • For Landlords that pay Corporation Tax, larger Landlords and businesses • Can claim 100% of the tax back on any energy saving technology • Your Tax Office or Accountant will be able to provide more information http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp

20. Further Information • http://www.communities.gov.uk/publications/planningandbuilding/epclandlordguide • http://www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance/ • Your local Landlords’ Association • http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/SellingYourHome/DG_076370

21. Contact Details IHS South Barn, Cowix Farm Capel Road Rusper Horsham West Sussex RH12 4PY (01293) 871107 info@insidehousingsolutions.com