Energy Performance Certificate (EPC) Renewal for BTL

Energy Performance Certificate (EPC) Renewal for BTL

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SpeedBash

Original Poster:

2,325 posts

188 months

Tuesday 23rd October 2018
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I can't seem to find an exact answer to the following question on the interweb so though it worth asking on the off chance someone here knows.

I have a BTL property with a valid EPC which is due to expire in the next month.

The property is occupied by a long term tenant who was given the EPC prior to renting the property and has been the tenant for the bulk of the 10yr validity of the EPC.

Would I need to re-new the EPC whilst this tenant is still occupying the property or can I wait till the he eventually leaves and the property is placed on rent with a new tenant?

When searching the web for an answer, it isn't very clear but the language used seems to suggest one is required when a property is placed on rent - in my example, the property is already on rent so, potentially, I may not need to re-new the EPC - see below quote from MoneySuperMarket:

MoneySuperMarket said:
When should you get an EPC?
As a general rule, an EPC is required every time a home is put up for sale or for rent. So, a newly constructed home will have one, a landlord will need one to show potential tenants, and a seller must have one to show to potential buyers.

MJG280

722 posts

260 months

Tuesday 23rd October 2018
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My understanding is that an up to date EPC is required prior to a property letting or sale OR if the existing tenant's lease is renewed.
If your tenant is 'holding over' under the previous tenancy document then an updated EPC is not required.

There are other exceptions.

Wings

5,815 posts

216 months

Tuesday 23rd October 2018
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By coincidence I have several properties with their EPC presently due to end, and although all fully let, i will be renewing immediately all EPCs. With legislation presently stating that landlords will no longer be permitted to grant new tenancies, extend or renew a tenancy to an existing tenant without an EPC, the latter includes a tenancy moving from a fixed term to a monthly statutory periodic tenancy. Landlords breaching the legislation may face a fine of up to £5,000.

Also a landlord who wants to serve a valid Section 21 6A Notice, must have in place a valid EPC and an annual gas safety certificate.

gred

452 posts

170 months

Tuesday 13th November 2018
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As a follow up, I had one of my BTL's due for an EPC. Small two bed terrace and current rating D apparently. But with a potential for a B rating, if amongst other recommendations I instal solar water heating at a cost of £4-6,000 with a payback of £40 per year. So when I am 165 years old I'll be in profit! Excellent.
What a load of balony. No one has ever turned down a rental on the basis of the EPC, just a waste of time and (non renewable) energy.

dogz

334 posts

257 months

Tuesday 13th November 2018
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gred said:
As a follow up, I had one of my BTL's due for an EPC. Small two bed terrace and current rating D apparently. But with a potential for a B rating, if amongst other recommendations I instal solar water heating at a cost of £4-6,000 with a payback of £40 per year. So when I am 165 years old I'll be in profit! Excellent.
What a load of balony. No one has ever turned down a rental on the basis of the EPC, just a waste of time and (non renewable) energy.
This!! The EPC provides little to no benefit to the tennant and I have never had anyone query anything on any of mine or ask for things to be done if the rating was lower than would be deemed good. In fact I’m not even sure if anyone has ever asked for it before signing a tenancy agreement. It’s obviously such an important document

It’s just another way for the govement to make letting property a little bit harder and keep some people in jobs doing these inspections. How accurate they are is probably a whole other debate!

4Q

3,364 posts

145 months

Wednesday 14th November 2018
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gred said:
As a follow up, I had one of my BTL's due for an EPC. Small two bed terrace and current rating D apparently. But with a potential for a B rating, if amongst other recommendations I instal solar water heating at a cost of £4-6,000 with a payback of £40 per year. So when I am 165 years old I'll be in profit! Excellent.
What a load of balony. No one has ever turned down a rental on the basis of the EPC, just a waste of time and (non renewable) energy.
Solar hot water shouldn't cost more than £3k and you receive RHI payments of around £400 per annum for 7 years, which should recoup the bulk of the cost in addition to any savings made from free hot water for 8-9 months of the year.

Scabutz

7,647 posts

81 months

Wednesday 14th November 2018
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4Q said:
gred said:
As a follow up, I had one of my BTL's due for an EPC. Small two bed terrace and current rating D apparently. But with a potential for a B rating, if amongst other recommendations I instal solar water heating at a cost of £4-6,000 with a payback of £40 per year. So when I am 165 years old I'll be in profit! Excellent.
What a load of balony. No one has ever turned down a rental on the basis of the EPC, just a waste of time and (non renewable) energy.
Solar hot water shouldn't cost more than £3k and you receive RHI payments of around £400 per annum for 7 years, which should recoup the bulk of the cost in addition to any savings made from free hot water for 8-9 months of the year.
The EPC calc doesn't take RHI into account when calculating the savings. It juts takes an indicative install cost and savings calculated from the savings from heating the water.

Adding SHW or PV is a good way of wanging the rating up as well, useful if yours is terrible and need to raise it a few places. Also why a lot of new builds have PV to get the rating up

andye30m3

3,454 posts

255 months

Wednesday 14th November 2018
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my letting agent is saying I have to get a new EPC done as one of the 2 tenants I have is moving out, feels like its going to be a pain in the arse.

The last one was an F rating largely due to it being built in 1890, since the last one it's had a new boiler, new windows and a reasonable amount of insulation installed so fingers crossed it's enough to meet the requirement for E as neither the tenant or myself want him to move out so I can do more significant work.

superlightr

12,856 posts

264 months

Wednesday 14th November 2018
quotequote all
the formula the epc assessors used for solid walls changed about a year ago. Its now more generous in the calculations for solid walls if that applies to a property in a F or G rating.


Some assessors will make recommendations to get the property up to the min level at the cheapest cost.

scenario8

6,574 posts

180 months

Wednesday 14th November 2018
quotequote all
superlightr said:
the formula the epc assessors used for solid walls changed about a year ago. Its now more generous in the calculations for solid walls if that applies to a property in a F or G rating.


Some assessors will make recommendations to get the property up to the min level at the cheapest cost.
I’m sorry, I don’t understand either of your paragraphs. Can you expand a little?

Full disclosure - I’m qualified to produce these things.

Scabutz

7,647 posts

81 months

Wednesday 14th November 2018
quotequote all
scenario8 said:
superlightr said:
the formula the epc assessors used for solid walls changed about a year ago. Its now more generous in the calculations for solid walls if that applies to a property in a F or G rating.


Some assessors will make recommendations to get the property up to the min level at the cheapest cost.
I’m sorry, I don’t understand either of your paragraphs. Can you expand a little?

Full disclosure - I’m qualified to produce these things.
I don't understand them either. Full disclosure - I used to write the software that calculates them and run one of the accreditation schemes.

scenario8

6,574 posts

180 months

Wednesday 14th November 2018
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I appreciate many have little respect for these certificates. I can pick holes in them for fun but I think it would be disingenuous to suggest they, or at least the concept is entirely without merit. There are thousands of properties up and down the land that are shockingly energy inefficient and historically the under-educated masses would have very little idea that property A would cost them twice or more in heating costs as opposed to property B and would make horribly uninformed decisions only discovering later that their purchase or rental costs the: a fortune. Naturally many or most buyers/renters continue to not care especiajlly so in areas where there is so much demand for housing and supply is scarce.

Recent changes to legislation making it harder to let the comparatively inefficient properties will shake things up quite a lot. I fully expect dodgy certificates to be issued left, right and centre.


scenario8

6,574 posts

180 months

Wednesday 14th November 2018
quotequote all
Scabutz said:
I don't understand them either. Full disclosure - I used to write the software that calculates them and run one of the accreditation schemes.
Which one, if you don’t mind me asking? You might save me a phone call!

Scabutz

7,647 posts

81 months

Wednesday 14th November 2018
quotequote all
scenario8 said:
Scabutz said:
I don't understand them either. Full disclosure - I used to write the software that calculates them and run one of the accreditation schemes.
Which one, if you don’t mind me asking? You might save me a phone call!
Ecmk . They are still about I think but were sold off to eTech after I left.

superlightr

12,856 posts

264 months

Wednesday 14th November 2018
quotequote all
I was told that for solid walls the calculations changed about a year ago. Thus they now get a slightly better weighting.

Scabutz

7,647 posts

81 months

Wednesday 14th November 2018
quotequote all
superlightr said:
I was told that for solid walls the calculations changed about a year ago. Thus they now get a slightly better weighting.
Looks like the assumed u values for solid and cavity walls were revised in the latest version of rdsap. If the same property is reassesed with the new version and has solid or cavity walls there might be a slight increase in SAP rating, bit not much.

scenario8

6,574 posts

180 months

Thursday 15th November 2018
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superlightr said:
I was told that for solid walls the calculations changed about a year ago. Thus they now get a slightly better weighting.
Oh, that’s interesting. I’m happy to take your word for it but the change in assumed U values can’t be much as Incan’t even find a bulletin referencing the changes. Ordinarily the accreditation bodies make as much as they can when there are changes to methodology as it gives them the opportunity to enforce some compulsory CPD, set exams that need to be passed to continue to operate, employ some targeted auditing and the like. I imagine these changes had only a minimal net affect on the ultimate “score”. I doubt anyone could be ar$ed to check but my money is on it improving a typical 1930s semi by half a point or so.

The assessors themselves don’t have much control over the recommendations in the report. They can suppress some recommendations but have to justify that suppression and open themselves up to targeted auditing in doing so. They can’t change the order in which the recommendations are presented.