Winter 2008 // contents | back issue | contact us | mortgage express

Green house effect

Andrew Strange finds that the new Energy Performance Certificate could help landlords attract tenants

Since 1 October landlords have been required to produce an Energy Performance Certificate (EPC) for all new tenancies. Valid for 10 years, the EPC provides landlords and tenants with information about the energy efficiency and carbon emissions from a property.

With household bills rising, energy efficiency measures could reduce costs by as much as £300 a year for tenants who are feeling the pinch in the difficult economy. An EPC, which provides information in an easy-to-understand A-G rating similar to that on fridges, could be a useful tool for attracting new tenants.

Communities Minister Ian Wright says: “The certificate provides clear information on a building’s energy efficiency and recommends cost-effective improvements. The EPC should be welcomed by tenants who are looking for better value and more energy-efficient rental properties, as well as landlords who are, more than ever, keen to attract responsible and committed tenants.”

The case for the EPC was borne out by a recent YouGov survey, which found that, after location, household bills were the most important factor in choosing a property to rent, with 22% of those questioned saying that these costs had an ‘extreme effect’ on their decision-making.

While such things as noisy neighbours and permission to paint on walls continue to feature highly in rental decisions, it is financial concerns that top the chart of questions to ask landlords. More than 35% ranked council tax in their top three factors to ask landlords and 34% ranked household bills in their top three.

Ian Potter, Head of Operations at the Association of Residential Letting Agents, says: “Landlords should get their EPCs sorted out as quickly as possible so they are ahead of the game when it comes to re-letting. Every landlord hates voids and needs to be in a position to react quickly when an existing tenancy ends. Equally, tenants may be interested in energy efficiency – some for green motivations but more as an indication of their fuel bills.”

EPCs can only be produced by an accredited assessor. If you get a Home Information Pack, the cost of the EPC is included but if you get one separately, the cost for an average house is about £100.

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