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Confusion over EPCs rages on

Catherine Deshayes

Landlords are confused by the new regulations surrounding energy performance certificates...

Leaders, one of the UK's largest independently owned letting agents, report that confusion is rife among landlords about the new legislation regarding Energy Performance Certificates (EPCs) for rented properties.

Says Paul Weller, Managing Director of Leaders, "We are hearing from many landlords across the areas we cover that they have been advised by other agents not to worry about getting an EPC at the letting stage as one can be obtained once they have found a tenant.

"This is completely incorrect information and we are surprised and dismayed that landlords are being misadvised by some agents in this way.

"Landlords face a £200 fine if they are marketing their property to let without an EPC in place, or if one has not been ordered 14 days or more beforehand. Furthermore, they can be fined £200 for every day that the property is marketed without an EPC," added Mr Weller.

Leaders advised their landlords of the new EPC legislation several months ahead of it coming into force on 1^st October. Also, to encourage landlords not to wait until the last minute, the company offered a specially discounted rate on EPCs for those who ordered them early.

This was taken up well by Leaders landlords and means that they will now not have to delay marketing their properties and will therefore avoid unnecessary and costly voids.

However, it would seem that many landlords are either still ignorant about the requirements of the new legislation, or are putting off taking action. A survey by buy-to-let lender Paragon Mortgages published in the week preceding the 1st October EPC deadline, found that 81 per cent had not obtained an EPC for their properties.

Fifty-four per cent said they would wait until their existing tenants leave and they have to market the property for rent again. In fact, that decision could delay the property being rented out quickly and lead to unnecessary voids.

Mr Weller adds, "We strongly advise all landlords to get their EPCs sorted out as quickly as possible so that they are ready when it comes to re-letting their property.

"Void periods can be very costly and stressful, and there is absolutely no point in delaying as the EPC, once in place, is valid for ten years."

Whilst there is currently a degree of negativity about EPCs and how useful they actually are for landlords and tenants, Leaders believe that as tenants become more aware of EPC's, and begin to make comparisons between properties based on their energy efficiency ratings, those that are more energy efficient will be easier to let."

"It is not compulsory to follow the recommendations but tax savings and grants are available to landlords for improving energy efficiency, for example: installing a self-condensing boiler; fitting energy saving light bulbs; improving roof, cavity wall and floor insulation; fitting thermostats to control radiators and hot water cylinders; and installing double glazing," added Mr Weller.

Source: Leaders