Led by EPC assessor or retrofit specialist?

Led by EPC assessor or retrofit specialist?

11:24 AM, 28th February 2022, About 3 months ago 30

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EPCs give very brief ‘recommendations’ in order to increase your score and rating but……what maybe ‘recommended’ may not be right for your property. Are we then supposed to employ another specialist to look at the building in terms of seeing IF the recommendation chosen earlier WILL actually be compatible with it long term?

Can this additional cost (along with Planning consents etc) be attributed to the cost cap of (predicted) £10k max that is proposed that Landlords pay out to achieve a ‘C’ for each property?

I watched a presentation entitled ‘What lessons has the housing sector learnt from retrofit programmes so far’ and one of the issues raised was the cost of exactly this being a significant factor. More worryingly, they were suggesting there is no real national planning strategy, and it depends on how effective/responsive each council is to applications and the time it takes to get consent.

Another big issue is supply shortages mean that material costs are increasing and qualified labour shortages too. These are big councils and HA’s trying to do retrofit. What chance have private Landlords got?

By the time I have got an EPC done, got an actual surveyor out to determine what is actually appropriate, paid planning charges, actually found someone to do the work, costed it up – at that point, it might be cost-prohibitive to do that recommendation!

Is that where the exemption kicks in?

If so, a waste of time and effort to actually change nothing.

DSR



Comments

by Seething Landlord

15:42 PM, 3rd March 2022, About 3 months ago

Probably best to invest in a crystal ball if you really want to spend money before the regulations are published.

by Lorraine Mansfield

15:52 PM, 3rd March 2022, About 3 months ago

I recently purchased a flat in a block of 6, my epc is D and the flat below is a B I'.v just read they both have electric
storage heaters, I spoke to the assessor he advised to keep the heaters as it will go down potentially if i put new slimline plug in heaters in. I waiting to see what he advises how the same flat as mine has a B now we know it can be achieved.

by JB

16:40 PM, 3rd March 2022, About 3 months ago

Lorraine, I suggest you use the same assessor as the flat below.

by JB

16:41 PM, 3rd March 2022, About 3 months ago

If the cap is £10,000 and I want my money back in 3 years time the tenants rent will be going up by £64pcm.

by Luke P

16:45 PM, 3rd March 2022, About 3 months ago

The big question is whether they will give you an exemption certificate on the *projection* of spending the £10k won't get you into a band-C...or whether they'll make you spend it anyway (to, say, go from a low band-D to a high band-D) and THEN issue the exemption cert...

by Pete England - PaTMa Property Management

16:53 PM, 3rd March 2022, About 3 months ago

Reply to the comment left by Lorraine Mansfield at 03/03/2022 - 15:52
A top floor flat or a flat with more external wall will always have a worse score on the EPC system.

by psquared

17:46 PM, 3rd March 2022, About 3 months ago

Reply to the comment left by JB at 03/03/2022 - 16:41
I think you mean per week not per month.
£277 pcm recoups £10k on 3 years.

by JB

17:54 PM, 3rd March 2022, About 3 months ago

Reply to the comment left by psquared at 03/03/2022 - 17:46
You're right. If I were a tenant I'd not be too happy

by DSR

19:37 PM, 3rd March 2022, About 3 months ago

Reply to the comment left by JB at 03/03/2022 - 16:41
The question of when you want your money back is not the issue. If your tenant cannot afford it, what are you going to do? There may not be anyone else that can afford that kind of increase either.

As far as I read it, you can only apply for an exemption if upgrades to meet the new C are over 10k OR cannot be paid back over 7 years...and then there are some mighty caveats within that!

So, you either pay up and suck it up, get the property to a C (or as close as you can then go for exemption) then rent out and recoup costs over a longer period OR sell the property completely now before you pay out for any upgrades.

You still have the option of upgrading and then selling on - FTB's and investors may pay that bit more as the legwork and upgrades are already done.

by DSR

19:45 PM, 3rd March 2022, About 3 months ago

Reply to the comment left by Luke P at 03/03/2022 - 16:45I very much doubt it!
I think I read somewhere they will take account of any upgrades you made before the date when the C comes into effect, but I think it stated only 2 years before.
So there may be the situation if you upgrade now and incur significant costs (but still only get to a D for example), if your existing tenant does not move until 2028 when the C rating becomes law for ALL tenancies then potentially you would not be able to factor in those previous costs. In other words if there were still significant works needed to get it to a C you would need to carry them out AFTER 2026 to be able for them to be counted within the 10k cap by 2028.
Like everything this is all speculation - the situation in Ukraine could change this all yet again. , there are many many effects that could ripple down to effect this EPC C requirement yet.

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