Energy Performance Certificates (EPC)

From the 1st April 2018  all rental properties, with the exception of Listed Buildings,  must have a minimum Energy Performance Certificate (EPC) rating of E before granting a new tenancy to new or exisiting tenants.  From the 1st April 2020 the regulations will include existing tenancies too. . The EPC shows two things; the energy efficiency rating (relating to running costs) and the environmental impact rating (relating to the carbon dioxide emissions) of a property. It is shown as coloured graphs similar to those found on domestic appliances. The rating is also accompanied by a recommendation report that shows how to improve the dwelling’s energy efficiency. Once an EPC is obtained, it is valid for 10 years for rented properties.

The EPC grades the property’s energy from A to G, with A being the highest rating. If you have a brand new property it’s likely to have a high rating, whereas an older property is likely to be around a D or E.
The EPC also gives energy-saving advice, including:

• Potential costs of heating, lighting and hot water after improvements are made
• Total potential savings and the potential rating after making improvements
• Recommended actions to take eg increasing loft insulation and draught proofing
• Potential cost of undertaking these improvements and the typical savings
• Whether or not the recommended actions are available under the Green Deal

A qualified Domestic Energy Assessor (DEA) has to be instructed before the property is marketed and the report has to be given to any potential applicant interested in the property. The EPC has to be obtained within seven days of the property being marketed.

Summary

Becoming a landlord can be a rewarding investment but it does not suit everyone. You need to be looking for a medium to long term investment and be willing to accept positive and negative fluctuations in the property market.

We hope you have found this guide comprehensive and interesting. The guide is written to give you the knowledge and confidence required to buy an investment property. We also hope you enjoy the experience, it can be great fun choosing and decorating a rental property, you may go on to buy more!

If you have decided that you would like to consider a buy to let investment, then we are here to help you – every step of the way.

Premier Lets and Sales – Your Partner In Property

Disclaimer
Please note that this guide is intended as general guidance only forindividual readers and does NOT constitute accountancy, tax, investment or other professional advice. Premier Lets and Sales accepts no responsibility or liability for loss that may arise from reliance on information contained in this guide.