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The importance of Energy Performance Certificates
Home Information Packs (HIPs) were introduced in December 2007 to provide valuable information at the start of the buying process. HIPs contain an array of information including a sale statement, local searches and evidence of title, all of which could save buyers both time and money. HIPs also include an energy performance certificate (EPC) with advice on how homeowners can reduce carbon dioxide (CO2) emissions and fuel bills.
New rules for Energy Performance Certificates
On September 9 2008, changes were made to regulations regarding the energy performance of buildings and these alterations were rolled out on October 1, 2008 - from this date onwards, all properties that are built, sold or rented out will require an EPC.
There were several measures introduced in an attempt to improve the energy performance of buildings after it was revealed that our buildings are responsible for almost 50 per cent of the UK`s energy consumption and carbon emissions. The way a building is constructed, insulated, heated and ventilated will affect its carbon emissions.
The measures included the introduction of EPCs with A-G efficiency ratings for properties - the most efficient homes, which in turn should have the lowest fuel bills, would fit into band A. However, unlike the refrigerators and freezers available today, very few houses will boast even a B rating, never mind an A! These measures also included recommendations on how a property`s energy efficiency can be improved, thus lowering fuel bills and carbon emissions.
Other measures included: making it necessary for all public buildings to display energy certificates; making inspections of air conditioning systems essential; and giving advice and guidance to boiler users.
Why are energy performance certificates important in the rental sector?
Landlords must supply tenants with EPCs from the first time they let a home after the October 1 2008 introduction date. The EPC is only valid for a property that is self-contained and will remain valid for 10 years. Tenants interested in renting a property must have an EPC made available to them free of charge – only when you rent a room and share facilities is an EPC unnecessary.
An EPC report will make recommendations to improve energy efficiency in the home, the estimated cost of implementing those recommendations, the savings that could be made each year and how this would change the energy and carbon emissions of a property.
Certification therefore raises the profile of energy efficiency for properties by making the system visible, quantifiable and mandatory. It will enhance transparency and make it easier for tenants to compare properties like-for-like.
This in turn could have a huge impact on the rental sector. For example, landlords considering investing in a property - and tenants considering letting one - will think about the sustainability issues and the cost of utilities to service those buildings. In 2008 there have been two rounds of price hikes from the UK`s `big six` energy providers – Eon, Scottish Power, British Gas, Scottish & Southern Energy, Npower and EDF Energy – with prices increasing by as much as 35 per cent in the last set of increases alone. The average energy bill has increased by £380 since the turn of the year and now averages £1,300 across the UK annually. That has pushed the issue of energy efficiency to the forefront of people`s minds as they look to keep a lid on their living expenses.
The EPC system places much greater emphasis on energy performance allowing tenants to make an informed decision before they commit to letting a property.
Landlords and tenants rights
Remember landlords are now legally obliged to supply EPCs to prospective tenants on request unless a tenant is renting just a room and sharing facilities. EPCs can only be produced following an assessment from an approved domestic energy assessor and the cost, when ordered from an estate agent for an average home, will be about £85 excluding VAT. Our fee at Wirral Precision HIPs, for the majority of Wirral properties, will not exceed £65 VAT free, a saving of 35%.
N.B. See Prices page for our competitive price structure.
Landlords should think about home insurance too – to cover buildings, contents (if the property is let fully or part furnished) and landlord liability. Tenants are responsible for covering their own contents.  | 
