Landlords will need a new EPC for EVERY new tenancy

Landlords will need a new EPC for EVERY new tenancy

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.

HMO EPC is needed when a room is rented out

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.

‘Greatly impact PRS landlords’

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.”

Upgrading five million homes

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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Jo Westlake

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18:22 PM, 6th December 2024, About 2 weeks ago

Reply to the comment left by Jakjak at 06/12/2024 - 16:48
Is the check any different to an independent assessor being audited?
They all seem to be terrified of audits to the extent they refuse to acknowledge the existence of insulation.

Even if I have mountains of photos of insulation being installed, receipts for insulation and Building Control certificates proving it complies with the standards of whichever year assessors always find an excuse to put "assumed none" or "poor". Building Control certificates don't say exactly how much insulation was installed, the assessor will say the proof of purchasing insulation doesn't prove where it was installed and if the photo is taken far enough away to show the neighbouring properties the tape measure the builder is holding can't be seen. If the photo is close enough to see the tape measure the neighbouring properties can't be seen, so could be taken anywhere.

I understand that for £70 we can't expect an assessor to put in much effort. When EPCs were just a harmless bit of nonsense it didn't matter if they were correct. Now it is very costly when assessors get it wrong and potentially means people being evicted from much loved homes.

If we have to have so many extra assessments done we would soon save the cost of the training cost and even if we faced tougher auditing it would be far better than arguing with an assessor who couldn't care less about our livelihood.

Jakjak

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19:37 PM, 6th December 2024, About 2 weeks ago

Reply to the comment left by Jo Westlake at 06/12/2024 - 18:22
I totally agree with you but I suspect they might also change the EPC audit requirements to close off any loopholes as they update the software from time to time.

I think there was a specific checkbox to state your interest in the property which then probably flags an alarm to the auditors.

My solution was to find and EPC assessor who will work with me for my properties but they are hard to find and he said the profit margin isn't very good in being an assessor, so I hope he stays in business.

Jo Westlake

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20:22 PM, 6th December 2024, About 2 weeks ago

Reply to the comment left by Jakjak at 06/12/2024 - 19:37
I'm not suggesting we should give ourselves fraudulent EPCs. Or be unduly lenient, just that we know our properties better than an independent assessor would. If we were audited we would know exactly where to drill core samples to prove insulation if the auditor wasn't satisfied with all other forms of evidence.
I'm just churning the numbers. I have 16 rental properties, several of which are HMOs. Usually in the region of 20 tenant changes a year. That's potentially £1400 a year instead of the £100 a year I currently spend on EPCs.
Most of my properties are categorically B or C. They were built as EPC C and have become B after the addition of solar panels.
Some of the older ones are only just C so it's always risky which way those assessments go.
Four are D or E. Two of them should be higher but assessors won't accept insulation exists.
One of them could be C if it had the night storage heater upgraded to a Dimplex Quantum according to one assessor but another one says that wouldn't do it. How are we supposed to make rational decisions if we get conflicting advice?
The final one can't get above a D. It was G when I bought it 5 years ago and has had every possible improvement. Are exemptions still going to exist?

PH

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21:24 PM, 6th December 2024, About 2 weeks ago

Net zero ? If these plonkers were actually fully invested into all this clap-trap they would be making it compulsory for every household in the country to comply with these landlord battering rules but no, they just pick on the minority who are easy pickings. It won't have the slightest effect on net zero but it will line the coffers for them. Do they really think we are that wet behind the ears.

Crouchender

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8:37 AM, 7th December 2024, About 2 weeks ago

Reply to the comment left by PH at 06/12/2024 - 21:24
Suspiciously Chapter 3 of the consultation- How often EPC are required is missing!!! So i can't make my opinion known . Any body else facing the same problem?

Dizzy

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8:46 AM, 7th December 2024, About 2 weeks ago

More nonsense.
If we need a new EPC for long-term tenants and the Muppets have changed the rules are we expected to evict the tenants if the Magic C is snatched from us?

Yes I have work booked in to bring my remaining D to a C, having reassured all my tenants they are "safe" as I have had EPC's on 4 this year and have already done work necessary on the other 3.

What really hurts is that I have totally unintentionally lied to my tenants that they are safe in their homes.

Surely even shelter and Generation Rent can't be supporting this!

Dizzy

Cider Drinker

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9:47 AM, 7th December 2024, About 2 weeks ago

Dear government numpty,

That is not a problem. I will never let a property to anew tenant.

Instead, I’ll sell to someone who is a member of a long established, local family.

You may need to build more than 1.5 million new homes to house your benefit claimants.

Kindest regards,

Reform U.K. voter

PH

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10:38 AM, 7th December 2024, About 2 weeks ago

Reply to the comment left by Dizzy at 07/12/2024 - 08:46
My property is a 69 C , just managed it but if it has to be tested again and falls short it will be sold , no messing about. Reap what you sow government !

moneymanager

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12:39 PM, 7th December 2024, About 2 weeks ago

"a small increase in costs"

Even IF it were 'small', it would be another increment, I arrange all my EPC, EICS, boiler servicing etc one a single day to negotiate the best price, politicians have no clue and no tenant has ever raised the issue if any if them.

Edwin Cowper

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22:20 PM, 7th December 2024, About 2 weeks ago

I'm interested in low numbers in Leicestershire and North Yorkshire

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