10:35 AM, 6th December 2024, About 2 weeks ago 37
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Private landlords in England and Wales will need to obtain Energy Performance Certificates (EPCs) every time they rent to a new tenant, the government proposes.
And landlords of HMOs will need a new EPC every time they rent out a ROOM to a new tenant.
The consultation published by the government has a deadline of 26 February for landlords to respond.
Currently, EPCs are valid for 10 years but the proposed changes aim to reduce the validity period to ensure EPCs are updated more often to reflect building upgrades and improvements.
The government says this will provide more current and relevant information for prospective tenants and policymakers.
The potential reforms suggest that an EPC should be required for an entire House in Multiple Occupation (HMO) when a single room within it is rented out.
This change aims, the government claims, to ensure that all rental properties meet the necessary energy performance standards, regardless of how they are rented.
The proposal states: “We are proposing to extend the scope of EPCs so that a valid one is required for an entire house in multiple occupation (HMO) when a single room within it is rented out, as currently the guidance states that an EPC is not required in this instance, only when the whole house is rented out.”
The government clarifies the rules for HMOs with this statement: “Mandating EPCs for HMOs when a single room is rented out will ensure that HMOs will need to comply with the requirements set out in the MEES Regulations if they did not have a valid EPC before this point.
“This would provide consistency across the private rented sector.”
HMO landlords might be relieved to learn that the government is proposing a ’24-month transitional period’ to obtain a valid EPC.
The proposal goes on to state: “Given the more frequent turnover in the PRS, a reduced validity period would more greatly impact PRS landlords.
“There may be an information benefit for prospective PRS tenants and policymakers for more current EPCs, and landlords may be able to capture upgrades to their properties more easily, in turn potentially improving desirability in the market and aiding compliance with regulations such as MEES.
“However, landlords may also incur a very small increase in costs from more regular EPCs.”
The proposal also states that the government is committed to upgrading five million homes by the end of this parliament.
While the average tenancy length in the PRS is 4.3 years, which is below the current EPC validity period of 10 years, the average tenancy length in the Social Rented Sector (SRS) is 12.2 years.
This means many long-term tenants in both sectors live in properties without a valid EPC.
Also, tenants with shorter tenancies could find their EPC expiring while still living in the property.
The government wants to have a valid EPC throughout the tenancy, rather than only at the point of marketing to ensure that landlords and tenants have access to accurate and up-to-date information.
This could also help, it claims, improve compliance with government policies and commitments, such as the Minimum Energy Efficiency Standards (MEES).
Concerned landlords can read the ‘Reforms to the Energy Performance of Buildings regime’ on the .gov website.
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Ryan Stevens
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Sign Up11:01 AM, 6th December 2024, About 2 weeks ago
Yet another reason to sell up BTLs and invest my money elsewhere!
Sangita Gupta
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Sign Up11:06 AM, 6th December 2024, About 2 weeks ago
The government PROPOSAL does not state
"Private landlords in England and Wales will need to obtain Energy Performance Certificates (EPCs) every time they rent to a new tenant"
What it does propose is :
"We are proposing to introduce for private rental properties a new trigger point where an EPC is required for when the current one expires."
They have in mind to lower the length of validity of the EPC but as far as I can see they haven't proposed a specific time-frame yet.
All this is a PROPOSAL i.e. not a fact that is in place.
Interesting that they also say :
"the government is committed to upgrading five million homes by the end of this parliament"
..... what they really mean is they are committed to getting Landlords in the PRS to upgrade whilst leaving evryone else off the hook.
Downsize Government
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Sign Up11:08 AM, 6th December 2024, About 2 weeks ago
Reply to the comment left by Ryan Stevens at 06/12/2024 - 11:01
The direction is state control of the rental sector, through taxes an regulation.
Tim Rogers
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Sign Up11:09 AM, 6th December 2024, About 2 weeks ago
The phrase 'revenue generation' comes to mind. But it will also catch everyone as the rules for EPC's do and will keep changing. Some of those changes will be necessary, the juxtaposition of the zero carbon drive to the EPC cost driven banding needs to be resolved.
Having recently found a wide difference between EPC inspectors, ( band D to almost Band B), with no changes having been made, I have zero faith in the EPC system when it comes to electric only properties.
JeggNegg
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Sign Up11:14 AM, 6th December 2024, About 2 weeks ago
Is it April 1st?
I thought private landlords didn’t work!
Yet this is yet another rule landlords have to do in their own time.
It would be nice if the EPC database is completely up to date, so any upto date improvement we do to improve energy efficiency in our rental properties, the EPC computer recognises that. Otherwise what’s the point? I hope there are sufficient trained assessors for this to be carried out efficiently..
Will this be a PRS requirement only?
JeggNegg
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Sign Up11:17 AM, 6th December 2024, About 2 weeks ago
Reply to the comment left by Tim Rogers at 06/12/2024 - 11:09
I have little to no faith in EPC data base, for many years. Is this yet another Government idea which has not been thought through?
Dylan Morris
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Sign Up12:02 PM, 6th December 2024, About 2 weeks ago
My small portfolio of single let rental properties are all C rated. The EPC’s were carried out two years ago. The certificate is valid for 10 years. I’m really confused by this Government proposal. Do I have to arrange for a new EPC when there’s a change of tenant even though the current one is within the 10 year expiry date ? Or is the proposal to simply have a new EPC carried out when it’s expired even though it’s the existing tenant remaining in occupation ?
Reluctant Landlord
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Sign Up12:35 PM, 6th December 2024, About 2 weeks ago
While the average tenancy length in the PRS is 4.3 years, which is below the current EPC validity period of 10 years, the average tenancy length in the Social Rented Sector (SRS) is 12.2 years.
This means many long-term tenants in both sectors live in properties without a valid EPC.
Also, tenants with shorter tenancies could find their EPC expiring while still living in the property.
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And? The EPC is worked out according to the property 'status' at that snapshot in time. If there no further upgrades to insulation made for example then the EPC rating stays the same until it expires. So how does that effect anything? If the tenant moves out after it expires then we already have to have another EPC before it can be let again anyway so what difference does this proposal make exactly?
NONE that's what! It only causes more paperwork, more costs and this will be passed in in higher rents....
Ryan Stevens
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Sign Up12:46 PM, 6th December 2024, About 2 weeks ago
The headline 'Landlords will need a new EPC for EVERY new tenancy' is misleading.
The government is proposing that there be an EPC for the duration of the tenancy, not that there has to be a NEW EPC every time the tenant changes.
However, no doubt, more admin, paperwork and penalties for PRS landlords (and probably nobody else).
Sam B
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Sign Up13:05 PM, 6th December 2024, About 2 weeks ago
Reply to the comment left by Ryan Stevens at 06/12/2024 - 12:46
Are you sure? I am pretty sure I have read elsewhere it is when ever there is a new tenancy.
So, for student landlords where there currently would be 1 epc over 10 years, now assuming they even stayed a full year (remember end of fixed terms even for students) would mean 10 epcs over the same period in future.