EPC legislation for rental properties

[Shaun the Broker]

Is everyone aware that from 2018 that all rental properties both commercial and residential will need to show an Energy efficiency rating above E.

I'm in the industry as a mortgage broker and a landlord and the first I heard was when a client buying a property brought the below link to light and as a result pulled out of the sale because of the option to upgrade the current rating was not feasable. Making her future plans to rent out the property impossible

http://www.clarkslegal.com/Article/1943/Energy%20Performance%20The%20Importance%20of%20Acting%20on%20F%20%26%20G%20Ratings%20-%20A%20Reminder

I found this an interesting read and funny that as landlords we tend to be the last to know of any legislation that directly affects us...or am I the only only one that didn't know about this???

[Richlist]

Its good that you have highlighted this subject.

1. I think many landlords will be aware of the situation but, in answer to your question no, clearly not everyone will be aware.

2. I think its fair to point out that only a very small percentage of properties will be rated F or G and so the impact on the residential rental sector will be minimal. Almost any property with minimal loft insulation & double glazing is going to be well within the new limits. I suspect that virtually anything built since 1970 is likely to be OK.

3. One should bear in mind that with the social housing right to buy scheme and the lack of credible building programs by successive governments the state need private landlords almost as much as we need the state.

4. I suspect that most property rated F or G is let to housing associations or benefits tenants .....so if the government don't help landlords there is going to be a lot of needy, homeless people on the streets come 2018.

Edit: Saturday 25/10

I guess if you are in the market to buy an early 20th century/ Edwardian/ Victorian property you need to be carefull as costs to raise the rating might be high. Although double glazing, loft insulation, draught proofing & modern heating system/ controls etc will either already have been installed or can be added .......solid walls can be notoriously costly & disruptive to insulate. Achieving a minimum E rating is not difficult. I suspect an E rating can be achieved with minimal insulation and modernisation........although happy to be proved wrong.

[Mortitia]

I have gradually been upgrading my properties' insulation over the last 8 years. It is costly to insulate properly but if it keeps the bills down the tenants tend to stay I find. Doing this sort of work is never going to get cheaper.

On the late 70's builds I have insulated outside walls from the inside using cellertex or similar and re-boarding/skimming/new skirtings. It takes a few inches off the rooms but the affect on heat retention is amazing.

Also did the same on a massive Edwardian structure with many strange angles. Again great results. Luckily I have good tradesmen who are interested in the work and have an eye for detail.

I expect properties that fall below the standards to imposed will be up for sale cheaply - maybe time for a new acquisition?