Heat is on landlords to compete for tenants based on energy ratings

Heat is on landlords to compete for tenants based on energy ratings

14:08 PM, 27th October 2010, About 13 years ago

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The heat is on property owners to show energy efficiency ratings for homes for rent.

Letting agents and landlords may have to show the stats to comply with a new European Union directive requiring energy ratings are available before property marketing starts that is due for introduction in 2012.

The move effectively reverses a recent government decision that landlords need only commission an EPC when advertising property with a view to obtaining a full certificate before letting completes.

The move to cancel the EPC requirement was designed to speed up transactions by cutting out the delay in obtaining an EPC before a property was marketed.

Instead, the directive calls for the seller or landlord to have the EPC available as soon as property details are published – and they should go on to boards outside the property as well.

Current rules say buy to let properties must have an EPC so prospective tenants can make informed decisions about energy consumption and bills.

In Scotland, signing a lease without a valid EPC in force is an offence.

Housing minister Grant Shapps recently scrapped rules about having an EPC before a property was marketed.

Landlords and sellers may have to spend up to £3,000 a property to make them meet energy saving standards, if other energy policies come in to force.

The figure comes from a report by the Energy Saving Trust that also claims 70% of tenants and buyers would opt to renegotiate a transaction if they knew a property was not rated as energy efficient.

The trust also suggested properties that failed to meet the required ratings should be removed from the letting or sales markets until improvements were carried out.

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