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Topical Tips
125

September
2008 |
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From 1st October 2008 new regulations come into
force for anyone who is involved in letting property. Landlords of both
residential and commercial premises will need to have an Energy Performance
Certificate (EPC). |
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An EPC contains two comparative graphs, one being the Environmental Impact
Assessment, the other the energy efficiency of the property. As with
domestic appliance ratings, the closer to Grade 'A' on both scales the more
efficient the property and less of an impact it has on the
environment.
The report also contains recommendations where the
property scores could be improved. Some are as simple as changing over to
energy efficient light bulbs. More costly recommendations can include
double-glazing, cavity wall insulation and replacement of heating apparatus.
The recommendations are not mandatory, but can save money following the initial
expenditure. |
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Landlords will have to obtain a new certificate
once every ten years at their own expense and make them available to all
prospective tenants before any tenancy agreement, rental contract or lease is
signed. Landlords who do not produce an EPC when asked, either by a tenant or
local Trading Standards, will face a fine.
An EPC can be issued by a Domestic Energy Assessor,
a Home Inspector or the landlord. In the latter case, the Landlord must have
attended and passed an approved accreditation scheme. |
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The Department for Communities and Local Government
has provided some guidance for landlords as follows:
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EPCs will be mandatory on whole or
parts of buildings where the parts are self-contained
units of accommodation. They will not be required for Houses in Multiple
Occupation where there are
shared facilities.
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The definition of commercial buildings and residential properties (i.e. houses
and flats) will include holiday letting properties and student accommodation.
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EPCs will be mandatory whenever there is a change
of tenant. EPCs will not, however, be required where a tenant who is already in
residence continues after October 1st, even when a tenancy agreement
is
renewed.
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The same EPC can be produced for up to ten years,
even if the landlord updates the accommodation with improved insulation or
other enhanced energy measures. However, if the landlord decides to sell the
rental property, the EPC will expire after one year of
issue.
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Other than Houses in Multiple Occupation, the only other exemption is for
emergency accommodation provided by landlords for tenants needing to relocate
urgently. Even so, EPCs must be provided as soon as
possible.
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Do not assume that EPCs apply only
to sellers of houses or commercial properties as explained above, they
apply to landlords as well.
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Plan ahead to ensure you have an
EPC as any tenant could ask for it at any time so could Trading
Standards.
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Ask your Barnes Roffe partner
should you have any questions.
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Topical Tips is designed to be a
simple and useful source of ideas and information for clients and contacts of
Barnes Roffe LLP. If you are unsure about the implications of any idea
contained therein please contact your Barnes Roffe LLP partner. Barnes
Roffe LLP cannot take responsibility if the ideas are implemented without its
involvement. |
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