As some of you will know, the regulation on letting properties are constantly being tightened up, usually to teh detriment of the Landlord!
I know that there will be a lot of farm owners with former farm cottages that are now being let out on the open market, usually on an AST. However, the regulation have altered recently with regard to having a satisfactory Energy Performance Certificate (EPC) and from 1st April 2018,Landlords are now prohibited from carrying out a new tenancy on a property with an EPC of Band E or worse.
Our EPC's all suggest that the potential for improvements are minimal in every case for 3 old cottages, short of external insulation type works! Not going to happen!! We have made small improvements over the past few years since the last EPC, better boilers etc but they are still LPG, no natural gas down here!!
http://www.landlordsguild.com/changes-to-epc-regulations-2013/
Now my experience that I am pretty sure will be the same for the majority of properties built before the 1950's is that the properties struggle to meet Band E and even with a lot of work, will still struggle... There are exemptions out there, but I am far from sure quite how one can actually action
them! Anyone had experience??
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Exemptions from making available an EPC
An EPC may not be required if the landlord can demonstrate that any of the following applies:
Format of EPC
It is sufficient for a prospective landlord to give or make available a copy of the EPC [7] and it may be given or made available electronically if the intended recipient consents to receiving the certificate electronically. [8]
EPC must be commissioned before marketing
Just as previously, an EPC must be commissioned (ordered) before a building is marketed for rent [9]. Before marketing the building, an agent acting on behalf of the prospective landlord must be satisfied that an energy performance certificate has been commissioned for the building. [10]. The prospective landlord and agent (if there is an agent) must use all reasonable efforts to secure that a valid energy performance certificate is obtained for the building before the end of a period of 7 days starting with the day on which the building was first put on the market [11]. If it was simply not possible to obtain the EPC within 7 days then, a further 21 days is allowed but this further 21 days is only allowed if all reasonable efforts were made to obtain the EPC in the first 7 days [12].
Written particulars and commercial media
Under the old rules, the front page of the EPC was required to be put into written particulars which included certain marketing material such as displays, lettings particulars etc. However, the requirement to put the front page of the EPC into particulars has been removed. From 9 January 2013, the asset rating of the building expressed in the energy performance certificate must be stated in any advertisement of the rental in commercial media [13].
Where a building or building unit to which this regulation applies is offered for sale or rent on or after 9th January 2013, the asset rating of the building expressed in the energy performance certificate must be stated in any advertisement of the sale or rental in commercial media. [Regulation 11]
Commercial media is defined in the DCLG guidance as being (but not limited to):
Asset rating is defined in regulation 2 as (as amended by The Energy Performance of Buildings (England and Wales) (Amendment) Regulations 2016:
“asset rating” means an energy performance indicator determined from the amount of energy estimated to meet the different needs associated with a standardised use of a building
The guidance provides that:
There is no requirement to display the full certificate but where there is adequate space, the advertisement should show the A-G graph. However, it is recognised that this will not always be possible. In such cases the advertisement should include the actual EPC rating of the property (for example C). [14]
The regulations make no mention nor requirement to insert the graph whatsoever despite what the guidance suggests. it’s unclear what is meant by “adequate space?” Therefore, in all written particulars such as:
The prospective landlord or letting agent should place either (or both) of the following within the media:
Once a request for written particulars is made, the EPC must be available for the prospective tenant. If the request was in person, it should be given with the letting particulars otherwise, it should be given at the viewing. Alternatively, if the information is on a website then the EPC may be made available and linked to online. However, if the prospective tenant requests a paper copy, then they must be given one because the electronic method is only suitable if the prospective tenant consents to receive the EPC that way.
How long does an EPC last?
An energy performance certificate and accompanying recommendation report lasts for 10 years unless another EPC has been produced within that time in which case only the latest one produced survives. [See reg 9(2) for EPC and reg 4(4) for recommendation report].
Penalties
Like the majority of the regulations, the penalty notice parts have been slightly re-written and slightly simplified. However, the general outcome is basically the same as the previous regulations. In relation to a dwelling and a failure to commission before marketing or make available / give an EPC to a tenant, the penalty is £200.00. [15] Where the building is not a dwelling (commercial buildings) the penalty is calculated by the formula found in regulation 38(2) with a minimum of £500 and maximum of £5000.
Section 21 notice
In England, no section 21 notice may be served at a time when the EPC has not been given to the tenant. Please see this article for full details.
Appeals
A review of a penalty notice may be requested within the period specified in the notice (which must not be less than 28 days [16]). If, after a review, the penalty charge notice is confirmed by the authority, the recipient may, within the period of 28 days, appeal to the county court against the penalty charge notice on one of the following grounds (and only on one of the following):
Footnotes
I know that there will be a lot of farm owners with former farm cottages that are now being let out on the open market, usually on an AST. However, the regulation have altered recently with regard to having a satisfactory Energy Performance Certificate (EPC) and from 1st April 2018,Landlords are now prohibited from carrying out a new tenancy on a property with an EPC of Band E or worse.
Our EPC's all suggest that the potential for improvements are minimal in every case for 3 old cottages, short of external insulation type works! Not going to happen!! We have made small improvements over the past few years since the last EPC, better boilers etc but they are still LPG, no natural gas down here!!
http://www.landlordsguild.com/changes-to-epc-regulations-2013/
Now my experience that I am pretty sure will be the same for the majority of properties built before the 1950's is that the properties struggle to meet Band E and even with a lot of work, will still struggle... There are exemptions out there, but I am far from sure quite how one can actually action
them! Anyone had experience??
--------------------------------------------------------------------------------------------------------------------
Exemptions from making available an EPC
An EPC may not be required if the landlord can demonstrate that any of the following applies:
- buildings officially protected as part of a designated environment or because of their special architectural or historical merit, in so far as compliance with certain minimum energy performance requirements would unacceptably alter their character or appearance; – (including a listed building, see page 6 DCLG guidance). Please have in mind listed buildings are NOT always exempt. It is only if certain energy improvements would unacceptably alter their character or appearance. How do you know what works would unacceptably alter the character or appearance if you haven’t obtained an EPC? What does “unacceptably altering” mean? Also, actually doing the EPC does not alter the character or appearance of the property! In our view, therefore, most listed buildings will require an EPC (or at least it’s safest to have one).
- buildings used as places of worship and for religious activities;
- temporary buildings with a time of use of two years or less;
- industrial sites, workshops and non-residential agricultural buildings with low energy demand;
- non-residential agricultural buildings which are in use by a sector covered by a national sectoral agreement on energy performance;
- residential buildings which are used or intended to be used for less than four months of the year or, for a limited annual time of use and with an expected energy consumption of less than 25% of what would be the result of all-year use;
- stand-alone buildings with a total useful floor area of less than 50m².
- Buildings under construction that have not yet been completed. [6]
- And, as previously, if the building is to be demolished.
Format of EPC
It is sufficient for a prospective landlord to give or make available a copy of the EPC [7] and it may be given or made available electronically if the intended recipient consents to receiving the certificate electronically. [8]
EPC must be commissioned before marketing
Just as previously, an EPC must be commissioned (ordered) before a building is marketed for rent [9]. Before marketing the building, an agent acting on behalf of the prospective landlord must be satisfied that an energy performance certificate has been commissioned for the building. [10]. The prospective landlord and agent (if there is an agent) must use all reasonable efforts to secure that a valid energy performance certificate is obtained for the building before the end of a period of 7 days starting with the day on which the building was first put on the market [11]. If it was simply not possible to obtain the EPC within 7 days then, a further 21 days is allowed but this further 21 days is only allowed if all reasonable efforts were made to obtain the EPC in the first 7 days [12].
Written particulars and commercial media
Under the old rules, the front page of the EPC was required to be put into written particulars which included certain marketing material such as displays, lettings particulars etc. However, the requirement to put the front page of the EPC into particulars has been removed. From 9 January 2013, the asset rating of the building expressed in the energy performance certificate must be stated in any advertisement of the rental in commercial media [13].
Where a building or building unit to which this regulation applies is offered for sale or rent on or after 9th January 2013, the asset rating of the building expressed in the energy performance certificate must be stated in any advertisement of the sale or rental in commercial media. [Regulation 11]
Commercial media is defined in the DCLG guidance as being (but not limited to):
- newspapers
- magazines
- written material produced by the landlord/agent that describes the building being offered for rent
- the internet
Asset rating is defined in regulation 2 as (as amended by The Energy Performance of Buildings (England and Wales) (Amendment) Regulations 2016:
“asset rating” means an energy performance indicator determined from the amount of energy estimated to meet the different needs associated with a standardised use of a building
The guidance provides that:
There is no requirement to display the full certificate but where there is adequate space, the advertisement should show the A-G graph. However, it is recognised that this will not always be possible. In such cases the advertisement should include the actual EPC rating of the property (for example C). [14]
The regulations make no mention nor requirement to insert the graph whatsoever despite what the guidance suggests. it’s unclear what is meant by “adequate space?” Therefore, in all written particulars such as:
- lettings particulars
- display cards (including window displays)
- newspaper or magazine advertisements
- internet advertisements
- any other commercial media
The prospective landlord or letting agent should place either (or both) of the following within the media:
- the asset rating by way of a numerical score and representative letter e.g. “Energy efficiency rating 44 – band E” or,
- insert the graph from the EPC which contains the asset rating band. The graph may be more visually pleasing and understood by prospective tenants.
Once a request for written particulars is made, the EPC must be available for the prospective tenant. If the request was in person, it should be given with the letting particulars otherwise, it should be given at the viewing. Alternatively, if the information is on a website then the EPC may be made available and linked to online. However, if the prospective tenant requests a paper copy, then they must be given one because the electronic method is only suitable if the prospective tenant consents to receive the EPC that way.
How long does an EPC last?
An energy performance certificate and accompanying recommendation report lasts for 10 years unless another EPC has been produced within that time in which case only the latest one produced survives. [See reg 9(2) for EPC and reg 4(4) for recommendation report].
Penalties
Like the majority of the regulations, the penalty notice parts have been slightly re-written and slightly simplified. However, the general outcome is basically the same as the previous regulations. In relation to a dwelling and a failure to commission before marketing or make available / give an EPC to a tenant, the penalty is £200.00. [15] Where the building is not a dwelling (commercial buildings) the penalty is calculated by the formula found in regulation 38(2) with a minimum of £500 and maximum of £5000.
Section 21 notice
In England, no section 21 notice may be served at a time when the EPC has not been given to the tenant. Please see this article for full details.
Appeals
A review of a penalty notice may be requested within the period specified in the notice (which must not be less than 28 days [16]). If, after a review, the penalty charge notice is confirmed by the authority, the recipient may, within the period of 28 days, appeal to the county court against the penalty charge notice on one of the following grounds (and only on one of the following):
- that the recipient of the notice did not commit the breach of duty specified in the penalty charge notice;
- that the notice was not given within 6 months of when the duty was allegedly breached or does not comply with a requirement imposed by the regulations; or
- that in the circumstances of the case it was inappropriate for the notice to be given to the recipient. [17]
Footnotes
