Landlords face soaring costs and EPC downgrades under new rules

Landlords face “death by a thousand clipboard checks” over new EPC rules that have come into force.

The government announced the biggest changes in the way Energy Performance Certificates (EPCs) are assessed in more than a decade, with the introduction of the Reduced Data Standard Assessment Procedure (RdSAP)

However, experts warn the new updated system will increase costs for landlords.

The news comes after Energy Secretary Ed Miliband has proposed all private rented properties need to meet EPC C targets by 2030 and 2028 for new tenancies.

Price rises are inevitable

Under the new system, energy assessors will now collect more detailed information about a property, such as the type and condition of windows, heating system efficiency based on model numbers or manufacturer data, and whether smart heating controls are installed.

Landlord organisation iHowz previously told Property118 that while the change is welcomed, landlords should be aware that the increased data collection requirements may mean assessments take longer to complete.

The National Residential Landlords Association (NRLA) has now warned that the extra time required for assessments means a rise in costs for landlords is “inevitable.”

Chris Norris, NRLA policy director, told The Telegraph: “It’s reasonable to assume that it will take assessors longer to take more precise measurements and input more specific data, so price rises are inevitable.”

Mr Norris warns the price of an EPC certificate, which typically costs between £50 and £120, could increase by £20 under the new system.

However, others warn the increase could be far higher.

Sean Horton, a mortgage adviser at Respect Mortgages, told The Telegraph that the more in-depth assessments could push EPC certificate prices up by £150 to £250.

He said to The Telegraph: “The window measurements alone are crackers. Instead of just noting ‘typical double glazing,’ assessors now need to measure each window individually, record orientations, frame types, glazing gaps, ages, draught proofing – the lot.

“That’s going to make each assessment much longer, with the cost passed on to the landlord.”

Homes could drop an EPC band

Experts warn that, alongside rising costs, the new EPC system may also cause some homes to drop an EPC band.

Kundan Bhaduri, of the Kushman Group real estate firm, told The Telegraph: “For portfolio landlords, this is death by a thousand clipboard checks.

“Costs will rise sharply, and worse still, homes that previously scraped a C rating could now drop to a D, dragging us into yet another regulatory penalty zone.”

Anna Moore, of retrofit company Domna, explains how the updated model affects energy ratings.

She says to The Telegraph: “The model changes how electric heating systems are scored, intended to solve the problem of people installing heat pumps and then seeing their EPC go down.

“The new model also lowers the ‘default assumptions’ on carbon emissions in traditionally heated homes, so many properties will see their EPC drop.

“For example, a 1960s 90m² home, with empty cavity walls, might drop five points from EPC D to EPC E.”

Despite the warnings, the government claims the new EPC system will “give people a clearer picture of how energy efficient their home is.”