EPCs may set tenant against landlord

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by Gill Montia

The Association of Residential Lettings Agents (ARLA) is warning that landlords and tenants could end up at odds over the implications of Energy Performance Certificates (EPC).

Legislation being introduced from 1st October means that the certificates must be available to new and prospective tenants.

EPCs are already a requirement of the Home Information Pack and cost between £80 and £200.

While the certificate will give a breakdown on the energy efficiency of a property, there is no requirement under the legislation for landlords to make any improvements, whatever the rating.

ARLA’s head of operations, Ian Potter, is fearful that tenants will think that landlords are obliged to act if a home has a poor energy efficiency rating.

He is suggesting that local authorities should have the power to instruct landlords to make improvements because EPCs could otherwise become little more than an expensive bureaucratic exercise.

The certificates rate a property on a scale of A to G and also give estimated costs for energy.

However, the average and actual costs could be far apart because the bill received by the tenant will reflect an individual’s lifestyle, possibly making the estimate misleading, rather than helpful.

Landlords reluctant to invest in insulating their properties are reminded that they can make use of a new energy saving tax allowance which allows them to claim tax relief against the cost of buying and installing the following items: draught proofing; loft insulation; floor insulation; cavity wall insulation; solid wall insulation; insulation for hot water systems.

The maximum claim per property is £1,500.