Do you have the energy to meet requirements?

Do you have the energy to meet requirements?

Since April 2012, all commercial and residential properties available for sale or rent in the UK have had to have an Energy Performance Certificate showing: how costly that property is to heat and light; its C02 emissions; and the changes that could improve energy performance. There is an obligation to commission an EPC for all properties to be sold or let before marketing the property, whether it is a residential or commercial property.

However, conditions of the EPC are set to become more stringent says Neil Roberts, Director of Chartered Accountants Wright Vigar Limited:

“From April 2016 private residential landlords will be legally obliged to carry out the energy efficient measures recommended on the EPC, following a tenant’s reasonable request. Also, from April 2018 it will be illegal to let residential or commercial property that has an EPC rating below Band E.”

These changes may seem far ahead, but it makes good sense to have a property that performs well energy-wise and to make improvements that better that performance. Better performing properties should command higher rentals, and conversely, lower rated properties may have reduced rental values, or be susceptible to more void periods.

Forward planning is vital, and a programme of works to bring properties up to the required levels before 2016 is highly recommended in order to safeguard rental income.

However, for many landlords of residential properties particularly, upgrading may be challenging and costly – for example installation of new windows, or double glazing, lack of cavity wall insulation, loft insulation and so on. Also, the measures recommended on an EPC may not necessarily be eligible as tax deductible expenses against rental income.

Article as printed in the Retford Times 13 June 2013 – Author Neil Roberts.

Technical content correct at time of publishing.