Surely I am not the only landlord worried about new EPC requirements?

Surely I am not the only landlord worried about new EPC requirements?

9:44 AM, 17th February 2021, About 8 months ago 154

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Hello, I was wondering if Property118 could shed some light on the new proposed changes to the EPC requirements – my understanding is that over the next few years 2025 onwards, properties in the PRS have to be rated a C as a minimum. Currently, has to be above an E.

My worry is that the government seems to be applying this rule to all properties regardless of age, although I think it may be different if it is listed. It is not difficult for a new property to meet the requirements of a C or about.

However, as the owner of several Victorian terraces, it is much more difficult if not impossible to get this rating. For example, we do not have cavity walls. I have done all the usual things like loft insulation, double glazing, energy-efficient boilers etc etc but other suggested improvements seem to be a lot of outlay for very little impact on the EPC.

For example, I think the only improvement that has been suggested is using solar panels, but the property is not suitable for solar panels.  I am concerned that I may not be able to meet the new requirements despite my best efforts.

Surely I am not the only landlord who is worried about this?

Is there a campaign to ask for property age to be taken into consideration?

Thank you

Su



Comments

by Heather G.

13:29 PM, 19th February 2021, About 8 months ago

Reply to the comment left by Trapped Landlord at 19/02/2021 - 12:56
It's what I read they will "cap" the improvement expenditure to, to bring a property up to the minimum grade required. For example, if you need to spend £20K to bring a property up to C, you would only have to spend £10K in the first 5 years, and the second £10K in the next 5 years.

by Trapped Landlord

18:15 PM, 19th February 2021, About 8 months ago

Reply to the comment left by Heather G. at 19/02/2021 - 13:29
So strictly speaking, the rating can still be an 'e' after 5 years ?

by Trapped Landlord

18:24 PM, 19th February 2021, About 8 months ago

Doesn't this seem to anyone else to be too much of an ask and that when it comes to it, when practically half of the rental stock in the country is unlettable, the government will have no choice but to backtrack on the idea all together ?

by Bob S

8:55 AM, 20th February 2021, About 8 months ago

An EPC assessment is just that, an assessment, but one that sadly uses a dumbed down software tool and one that does not take into account what has actually been done to the property unless there’s ‘evidence of’ the work having been undertaken. Even then the assessment will use an ‘as built’ input rather than what the LL or householder has done to be ahead of the EPC game. The assessor will only take into account what they see on the day so if as I have cavity fill insulation where the external wall drill marks exist now but shortly will be covered by new external render there will be no evidence to assess against. Even showing invoices for insulation fitted will not count as the insulation procured could have been used elsewhere. So if you want your efforts to count ensure that you have them incrementally inspected and recorded by a professional at a professional fee.
Every 10 years there will be a new assessor with a new pair of eyes and yet the building could well have been altered a few times to hopefully have improved the environmental, comfort and running cost standing but the assessor may not be allowed to record the improvement as they may have to revert to ‘assumed’ inputs.
Remember, in following the tick boxes for their assessment at a very small charge they’ll leave an investment time bomb behind them so prepare as best you can fir the assessment.

Technically, be very careful about internal insulation as one commentator has already mentioned interstitial condensation and the risk to mould growth. The products to carry this out ought to be licensed under professional advice where the Professional has a Professional Indemnity insurance policy for the LL to claim against if the building then does not perform correctly.

To gain exemptions in the future for below par EPCs where £3.4-10.0k caps might apply again they’ll only be given against professional reports from RICS or similar bodies. The costs for which will be out side of the caps.

I believe that 99.9% of PRS LL whether here for the social justice or investment of being a LL want to have clients that are safe, comfortable and enjoy the product and service we provide but the systems that we work under need to befriend us not alienate us.

by Jessie Jones

9:31 AM, 20th February 2021, About 8 months ago

Reply to the comment left by Nigel Green at 17/02/2021 - 17:25
Hi Nigel, it sounds like you have done a very thorough job there. I'm curious to know what the cost of all these work was, and how many years you think it will take for you to break even on the project?

by DSR

9:44 AM, 20th February 2021, About 8 months ago

Small article in the Times today about this. No mention of the percentage of properties this will actually apply to in regard to all private properties owned. If they just showed these figures alone, everyone could see that they are hitting hard on such a small proportion of rented properties, 1. it really is just a token gesture comparing it to say asking ALL property owners to do the same 2. The unfairness about the cost alone of such measures being borne by the LL totally for the benefit of the tenant is ridiculous!

If this carries on I'll sell up and be a tenant myself!

by Mick Roberts

10:15 AM, 20th February 2021, About 8 months ago

My notes on your EPC mention.

I've had many tenants over 20 years, some 24 years & 7 years to 2028 for existing tenants is no time at all.

Out of all my houses, I've got a lot of 1970's. And many of them are EPC rating D. And they have latest combi boiler, UPVC, loft insulation, I'm sure I have many E's.
So to get to C if anything more can be done, this is gonna' cost & who is paying for this? I can give tenant a brand new house if Govt wish, but we all know New-Builds cost more to buy & rent.
I think this C rating if comes in will be the final nail. I reckon supply will reduce then more than now, & remaining rents will rocket.

The latest rule they are now proposing to bring in in 2025 is EPC to a C. I've already got the Combi boiler, UPVC etc., so it's external wall insulation. Approximately £10,000 each house, but they not bringing it in for Council houses or Owner houses-Only to Private Landlords.

You've had £100,000 of mine & tenants money on Licensing that they got nothing in return. 100k on houses that I don't want any more, all cause I've got loyalty to tenants.

If some Landlords only make £1000 pa, spending £10000 on insulation that then puts the landlord losing money for 10 years, why would a non charitable Landlord keep the house?

Constantly changing rules retrospectively is decimating long term Benefit tenants lives & homes.

This Govt & Councils have made it much more expensive for tenants to rent. Roll on EPC rating C in 2025. Rents are gonna' rocket more.

by Ana Martinez-Fernandez

10:24 AM, 20th February 2021, About 8 months ago

Reply to the comment left by John at 17/02/2021 - 13:26
Hi John, I too have properties in Leeds. How can I join the Whatsapp group please? It is also news to mee that LCC wants to get rented properties to an A grade!

by John

10:31 AM, 20th February 2021, About 8 months ago

Reply to the comment left by Ana Martinez-Fernandez at 20/02/2021 - 10:24
I have spoken to the council about it now. The previous poster might have taken things slightly the wrong way.

It was said in a presentation to the LL’s by Eon energy. So it doesn’t represent the councils views. The council are not aiming to go to A rating but will be following national guidelines. So it will be a C more than likely

Please post your email and I will message you the info for the group

by Ana Martinez-Fernandez

10:55 AM, 20th February 2021, About 8 months ago

Reply to the comment left by John at 20/02/2021 - 10:31
That's better news, thanks.
My email: homesuk@northernabode.com


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