Are you worried about what the 2016 EPC changes mean to you as a landlord?

As a heating engineer, many of the properties I currently visit are still running old, inefficient boilers, and current statistics state that 26% of Domestic properties being let achieve an E, F or G rating which will be detailed on their energy performance certificate (EPC).

But what will actually happen when a tenant requests new energy saving measures after April 2016? What should you do? It’s a very good question, and the reason I’ve put together this blog post.

Your obligations after April 2016

You probably already know that as of 1st April 2016, tenants will be entitled to make ‘reasonable requests’ for you to carry out energy saving measures recommended on their Energy Performance Certificate (EPC) – and you’ll have a legal obligation to do so. In fact, you might even have read about it in our recent blog post.

And no, this isn’t about hitting landlords where it hurts. These are all things even the moderately discerning renter will be looking for, and these regulations are being brought in as the UK government pushes for us all to be more energy efficient and conscious of wastage.

The government has made it clear that there will be consequences for those who do not voluntarily improve the energy efficiency of their properties by a specific time, so there is no excuse not to comply.

What to do if tenants request changes

If your tenants request energy saving measures to be carried out as recommended on their EPC, don’t panic! But you do need to take it seriously, so you should respond by telling them you will look into it immediately.

According to the Residential Landlords’ Association: “The landlord will not be able to unreasonably refuse consent. It will, however, be the responsibility of the tenants to ensure that the works are funded and the intention is that no upfront costs should fall on the landlord, unless the landlord agrees to contribute.”
Domestic PRS regulations also state: “To ensure that there are not upfront costs, landlords will not be obliged to make improvements where there is not Green Deal finance, ECO or other funding support available to undertake them.”
Now this is where it gets more tricky as the Government have stopped funding the Green Deal, but landlords in Scotland can access a home energy efficiency programme that provides access to cashback and loans for certain measures.

You need to have an assessment with Home Energy Scotland, but landlords can claim up to £1,300 through the Scottish Government’s HEEPS: Cashback scheme.

To break it down: up to £500 is available for installing a new boiler, up to £400 for insulation, and £300 for other measures like draft-proofing and secondary glazing.

All loans are interest free, and repayments are made over four years. For more information, check out the Energy Saving Trust’s official website.

There’s currently a bit of a grey area about how long you will have to carry out these measures (and I will update this blog when I know for certain), but I’m estimating you’ll probably have a couple of months’ lee-way.

1. Don’t bury your head in the sand

The worst thing you can do when a tenant asks you for energy saving measures, is nothing. You should reassure tenants that you are looking into the actions you need to take, and ensure you are aware of your responsibilities and legal obligations.

2. Do your homework

In most cases, replacing the boiler with an A-rated one is one of the biggest improvements you can carry out, but it’s worth doing a bit of research. Other recommendations that may be included on an EPC include fitting wall insulation, loft insulation, a new A-rated boiler, upgraded controls, or solar panels.

3. Ask for advice

Arrange to speak to letting agents and reputable heating engineers, as they will be able to better inform you of your obligations and exactly which measures you should be carrying out. Then, a heating engineer will be able to visit the property and give you a detailed, fixed-price quote for the work involved.

4. Get at least three quotes

I’d definitely recommend getting at least three fixed price quotes from experienced heating engineers, so that you can have an idea of the price you should expect to pay. But remember, cheaper doesn’t necessarily mean better, so make sure you also pick a company you trust.

5. Attitude is everything

Last but not least, please don’t think of these requests as if you are being backed into a corner. Instead, try to think of it as an investment in your property. If you carry out these measures, the property will be more attractive to future tenants.

Conclusion

I hope you’ve found this blog helpful, and remember; if a tenant requests energy saving measures, don’t panic! You may not be able to refuse reasonable requests, but definitely seek advice from letting agents and heating engineers, who will be able to advise you further on exactly what is required of you.

What do you think of the upcoming changes to EPC regulations? Let’s start a conversation in the comments.