Maximizing Energy Performance: Understanding EPC & MEES

1. ENERGY PERFORMANCE CERTIFICATES & MINIMUM ENERGY EFFICIENCY STANDARDS (MEES) Jacko Page - Premier Home Movers Ltd – www.premierhomemovers.cominfo@premierhomemovers.com – 07515 367745

2. MAIN TOPICS TONIGHTHow to interpret and understand your EPC How to ensure you get as good a rating as you canMinimum Energy Efficiency Standards (MEES) and the implicationsImprovements that can be madeQuestion & Answer TYPES OF EPC • RESIDENTIAL – EXISTING DWELLINGS BUILT BEFORE APRIL 2008 – RdSAP EPC - Reduced as assumptions made • RESIDENTIAL – NEW BUILDS; CONVERSIONS REQUIRING pp; BUILDS SINCE 2008 – SAP EPC from Architect’s plans – Can prove difficult to obtain? • COMMERCIAL EPCs – from shops to big warehouses • Government charges from £7/8 for RdSAP upwards to ‘lodge’ the EPC on register

3. P1 of an EPC – THE RATING

4. P2 – Existing Property – as at survey

5. P3 – Recommendations & improved ratings for future property

6. How to ensure you get as good a rating as you canBuild date accuracy – especially Extensions – see the Date bandsSplit up into sections (We call Extensions) depending on materials used – Walls; Floors; RoofsRoom in Roof dates – either an accurate date provided or the original build date used!Walls – insulation has to be proven to be there – visual inspection or invoices from a Contractor – if drill holes are there, show themFloors – ditto for under floor insulation – has to be 25mm to count so not under laminate flooringRoof – Measure insulation visually – first 50mm, then next 100mm - ensure they go up there Glazing – Is there a date inside the gap? If not, it defaults to pre 2002 – prove it by invoices/FENSA certs – if split, what % is being quoted as DGBoiler – ensure that the model number is showing and not dropped off – otherwise a default option might be used giving worst efficiency in the rangeHeating controls – Timer; Thermostat on wall (Show them); TRVs (over 50%) – care if wifi Stat as often in a drawer & missedHot water – if traditional HWC, make sure it is lagged with ‘red jacket’ wrap aroundDraught proofing of timber windows & doors – small increaseLow Energy Light bulbs – Just for the inspection? – small increaseAssessor will always use the ‘worst case scenario’ if uncertain or not visiblePost April 2008 properties should have a SAP EPC as the first EPC which is created from Architect’s drawings if you can get them – nightmare! If lived in, an ecmk Assessor can produce a RdSAP EPC but not the othersHow long as an AssessorOuthouses/Garages/Covered Walkways don’t count unless on main heating systemConservatories don’t count if an external quality door from the main house into – do count if an archway

7. Age bands

8. How to ensure you get as good a rating as you canBuild date accuracy – especially ExtensionsSplit up into sections (We call Extensions) depending on materials used – Walls; Floors; RoofsRoom in Roof dates – either an accurate date provided or the original build date used!Walls – insulation has to be proven to be there – visual inspection or invoices from a Contractor – if drill holes are there, show themFloors – ditto for under floor insulation – has to be 25mm to count so not under laminate flooringRoof – Measure insulation visually – first 50mm, then next 100mm - ensure they go up there Glazing – Is there a date inside the gap? If not, it defaults to pre 2002 – prove it by invoices/FENSA certs – if split, what % is being quoted as DGBoiler – ensure that the model number is showing and not dropped off – otherwise a default option might be used giving worst efficiency in the rangeHeating controls – Timer; Thermostat on wall (Show them); TRVs (over 50%) – care if wifi Stat as often in a drawer & missedHot water – if traditional HWC, make sure it is lagged with ‘red jacket’ wrap aroundDraught proofing of timber windows & doors – small increaseLow Energy Light bulbs – Just for the inspection? – small increaseAssessor will always use the ‘worst case scenario’ if uncertain or not visiblePost April 2008 properties should have a SAP EPC as the first EPC which is created from Architect’s drawings if you can get them – nightmare! If lived in, an ecmk Assessor can produce a RdSAP EPC but not the othersHow long as an AssessorOuthouses/Garages/Covered Walkways don’t count unless on main heating systemConservatories don’t count if an external quality door from the main house into – do count if an archway

9. MEESMinimum Energy Efficiency Standards and implications - EXEMPTIONSFrom 1.4.2018, you need a band A to E to be able to market your property.On version 2 of the rules by June 2018 after 3 months & already major changes!Lenders are de-valuing properties if a band F or GExemption can last for 5 years – expect it to get tougher?https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documentsWill the Assessor leave it un-lodged if a Band F or G, and then test the system with improvements? Revisit fees?You can apply for an exemption if it costs you anything to improve it – proof needed that you have tried and tested if you can

10. The RULES after April 2018 You are OK with existing tenants, but the ‘trigger point’ is when you have to replace a tenant or renew their lease – EPC can’t be F or G. – then you need a band E or better - operates until April 2020 In April 2020, you will need any ‘valid’ EPC to be of a Band A to E rating to continue an existing letting - A valid EPC is one that is within the ten year validity period and has not expired. If your EPC has expired and you are not renewing a lease or marketing for a new Tenant, you are OK until you do, as you don’t need an EPC until that ‘trigger’ point is reached

11. EPC Requirements, Ten Year Validity and the MEES EXAMPLESScenario one A landlord intends to let a property on a new tenancy from April 2018: If the property already has a required EPC which is less than ten years old then this EPC can be used to let the property. If the EPC is more than ten years old, or if there is no EPC, then the landlord will be required to obtain a new EPC to market and let the property. If that EPC shows an energy efficiency rating of F or G then the landlord will need to carry out sufficient energy efficiency improvement works to improve the property to a minimum of E (or register a valid exemption if applicable) before issuing a tenancy agreement. Scenario two A property let on a ten-year tenancy with an EPC F rating, where the EPC was obtained, as legally required, in 2015: On 1 April 2020 the landlord is continuing to let the property and will have to comply with the minimum energy efficiency provisions because there is a valid EPC which the landlord was required to obtain (the EPC will continue to be valid until 2025). Scenario three A property let on a twenty year tenancy with an F rated EPC obtained in 2009: On 1 April 2020 the landlord is continuing to let the property but in this scenario will not be captured by the minimum energy efficiency provisions because the EPC will have expired in 2019, and there is no legal requirement on the landlord to obtain a new one at that point (because the tenancy is ongoing). The landlord will only be required to obtain a new EPC (which will trigger a need to comply with the minimum energy efficiency provisions) if they intend to sell or re-let the property (to the current tenant, or to a new tenant) once the current tenancy expires, or if they (or their tenant) modify the property in a manner which would require a new EPC.

12. FOR AN EXEMPTION, THERE ARE CHOICES BUT I SUSPECT THE MOST POPULAR MEANS THAT YOU HAVE TO PROVE YOU CAN’T OBTAIN AT NO COST Q & A in Government brochure in above link Q: Do I have to spend a certain amount of money in improving the energy efficiency of my property? A: A Landlord is only required to make improvements to an F or G rated property to meet the minimum standard if they can do so at no cost to themselves. No cost funding can come from a range of sources, primarily (but not limited to): • Green Deal Finance, • ECO help to heat funding, • Local Authorities home energy efficiency grants You have to prove you have exhausted those alternatives Improvements that can be made - Refer to the Recommendations in your EPC

14. FUTURE PLANSRemove the ‘No cost to Landlords’ rule and replace it with a £2,500 cost cap(That figure includes VAT and would include any grant funding in arriving at the £2500 figureAny spend made after 1 Oct 2017 may be includedIf a measure is too expensive, 3 quotes will be needed to prove itProposed to be in place from 1 April 2019MINIMUM RATING REQUIREDSuggested that MEES will be a minimum D rating from 2022Then a minimum C rating from 2026There is a 5 yearly review that takes placeExemptions may be harder to justify and more costly improvements might be needed?

15. TYPES OF EPC THAT WE PROVIDE RESIDENTIAL – EXISTING DWELLINGS BUILT BEFORE APRIL 2008 – RdSAP - £37 No VAT IN NP CF SA1-18RESIDENTIAL – NEW BUILDS; CONVERSIONS REQUIRING pp; BUILDS SINCE 2008 – SAPEPC - £125 + VAT (£140 No VAT) COMMERCIAL EPCS – from shops to big warehouses - From £135 + VAT under 100 sq m & price depends on area (a 3 bed semi is often about 80 to 120 sq m)Government charges from £7/8 for RdSAP upwards to ‘lodge’ the EPC on register

16. ANY QUESTIONS • ..........................................................................