More Compliance you ask? Well yes, however, we have plenty of time to act now to spread the cost of home improvements between now and October 2018. Why you ask? Well my friends, I will explain.
Back in 2007 the Government introduced the need to offer potential tenants and purchasers access to an energy report, in order to help them make an informed decision about the running costs of their desired property before committing to a let or purchase. This all comes down to the Governments need to reduce the UK’s carbon footprint. The thinking behind the energy certificate was that if a property had a poor rating (i.e. high running costs for heating/lighting etc) then the property would become less desirable in the eyes of the consumer and decrease its rental value. Then came all the Green Deal promotions etc in a bid to encourage tenants and landlords to take up the incentives on offer at the time. In my experience, the energy certificate has barely rendered a second glance to applicants looking to let property. This is highly likely a result of tenants vastly outnumbering the actual amount of available accommodation in Torbay (and the UK as a whole) , and committing to a property, with annual running costs taking a back seat.
We in the industry have of course, as legally required been arranging these energy certificates for almost ten years. The thinking behind the certificate in the rental sector was that eventually, those dwellings with the poorer performing energy rating would either have to be brought up to standard or the properties would not be available for rental.
My advice to landlords is to start making improvements as soon as possible. Any property with an energy performance rating of E or below will not be permitted for residential lettings from October 2018. It is expected they will tighten this to D rating or below in the subsequent years. There will be a public register available with the ratings being published (other than the current DEA database we can access). Only in mitigating circumstances will properties be excused from this new law. These could be Listed buildings or properties in a conservation area. However, only Green Deal officials or energy assessors have the power to excuse the said properties.
A few ideas on how to boost your energy rating for your investment property…?
Upgrade your double glazing if there are older units installed
Upgrade your heating system – change old night storage heaters for newer, energy efficient models, or install gas central heating/replace older gas boilers
Does your property have cavity wall insulation or floor insulation? If not is it possible to have it?
Loft insulation? If you don’t have any get some!
Install LED lighting or energy efficient bulbs
To discuss these matters further please feel free to give me a call 01803 393203 or drop me a line direct on thepremierlettingscompanyltd@gmail