EPCs in 2028 to include existing tenancies?

EPCs in 2028 to include existing tenancies?

10:23 AM, 28th November 2022, About 2 years ago 24

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Hello, The govt propose that existing tenancies must have a rating of C or above from April 2028. It will be rather difficult to carry out the alterations needed whilst properties are occupied.

Section 21 will have been repealed by then, so as good tenancies cannot be ended, what do they expect will happen?

Or is this yet another situation (!!) that the govt have not even considered before enacting legislation?

Thank you,

Grahame


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Beaver

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10:49 AM, 7th December 2022, About 2 years ago

Reply to the comment left by DSR at 07/12/2022 - 09:47
I have no idea. I put a link to the only relevant document I can find about this on this thread:

https://www.property118.com/epc-policy-the-road-to-tenant-hell/

That thread is partly about tax treatment; not just what is it going to cost me but is it going to be capex or revenue expenditure?

If I want to upgrade and do everything my last EPC said I had to do I'd be looking at tens of thousands of pounds. Clearly, as a landlord I need to be able to plan ahead for that kind of disruption and expenditure. My experience of the recent change to EICR report requirements was that the cost of the knock-on work required to tick the relevant new box was a lot more than £3.5K. And the implications of being forced to meet Band C are an order of magnitude bigger than that.

GlanACC

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10:02 AM, 8th May 2023, About 2 years ago

When the cap on what you have to spend to upgrade to EPC C comes into play (however much it is , currenty mooted to be £10,000), then some of the upgrades may NOT be tax deductable and are classed as capital items which will be taken into account only when you sell the property (will reduce your CGT). So the picture is even more bleak than you thought. One bright spot is that any reparation that is required after an upgrade (eg. fitted a new boiler which requires part replastering of a wall and redecoration) should also be allowable again the cap as in effect it was caused by part of the upgrade.

Reluctant Landlord

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17:50 PM, 8th May 2023, About 2 years ago

Reply to the comment left by Beaver at 28/11/2022 - 17:41
the other option is to explain to the tenant that you will have no choice than to serve notice OR you get them to write you something to state they do not want the upheaval and you will need to wait until they end the tenancy (that gives you exemption for 5 years)

You could decide to do some bits that aren't too intrusive still, but if you go for exemption you don't have to.

Other way of getting a 'buy in' to delay this/get an exemption is to tell them that if of course the works are done then this will have an implication on the rent....

The way I see it, a LL does not want to loose rent, a tenant will not want a rent increase or be given notice. Exemption gives both breathing space and time for the government to sort out the mess that this will inevitably cause....

Reluctant Landlord

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17:55 PM, 8th May 2023, About 2 years ago

Reply to the comment left by John at 28/11/2022 - 19:54
you perhaps forget the energy savings are for the tenant not you. You can only work out payback the cost of install via rent returns.
Anything sold to back to the grid goes on the tenant savings not yours (unless you pay the utility bills?)

If everyone goes solar tomorrow the price per unit 'sold' back to the grid will drop like a stone so that will depreciate over time not increase...

Again if you have a battery to store excess then again only the tenant that benefits.

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