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r1071987
Administrator
23 Posts |
Posted - 03 Jul 2008 : 14:58:58
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New guidance for landlords on Energy Performance Certificates has been produced by Communities and Local Government.
Already proving controversial with the armies of Domestic Energy Assessors who had hoped for more work to come their way, the guidance says that landlords will be able to produce their own EPCs, and that EPCs will not be required for Houses in Multiple Occupation.
The guidance confirms that October 1, 2008, is the start date when EPCs must be provided on all rental properties whenever there is a change of tenant.
Where the tenant is in place before October 1 and remains in residence, no EPC will be needed. If the rental agreement is renewed, again no EPC will be required.
The requirement only kicks in when there is a new tenant. Landlords are then legally required to produce an EPC to show free of charge to all prospective tenants. The tenant who moves in must be given a copy of the EPC before the rental agreement is signed.
Where the landlord employs an agent, the agent can make the arrangements for the EPC, but the responsibility for any breaches lies with the landlord.
Also controversial is the fact that an EPC for a rental property can last for up to ten years. It does not, for example, need renewing if improvement work such as insulation is carried out. However, if the rental property is sold, then the EPC only has a shelf life of one year and will need to be renewed.
This is despite the EU ruling that EPCs can last for ten years. Last year, the Royal Institution of Chartered Surveyors legally challenged the UK Government’s ‘gold plating’ of the ten-year rule, although this challenge is now in abeyance.
Landlords are likely to find some of the guidance about HMOs confusing.
The guidance says that EPCs are required on the ‘whole’ or ‘parts’ of buildings, where the ‘parts’ are self-contained and do not share facilities such as kitchens. ‘Parts’ which need EPCs may, however, have their entrances in common parts of buildings.
But in a muddling example, CLG says that a hall of residence with student bedsits would not require an EPC on each bedsit, but would require an EPC for the whole building if it were to be sold, rented or constructed.
Apart from HMOs, the only other exemption is for emergency accommodation provided by landlords for tenants needing to relocate urgently. Even so, EPCs must be provided as soon as possible.
Landlords wishing to do their own EPCs would have to be accredited by a recognised body, which would presumably demand that the landlord attended a training course at their own expense. Landlords might also have to pass Criminal Record Bureau checks, as is required for DEAs, although this is not clear.
The leaflet also acknowledges that landlords might face problems with tenants denying access to anyone trying to carry out an energy inspection, and advises landlords to think of how they might resolve this issue.
Finally, landlords who do not produce an EPC when asked, either by a tenant or an enforcing officer, will face fines of £200. The enforcing authority will be the local Trading Standards department at councils.
Source: RLA Newsletter July 2008 |
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