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London Landlords could use EPC’s as a selling point for properties
Lettings Professionals is urging landlords to turn the new Energy Performance regulations to their advantage.
Lettings Professionals believe that the Energy Performance tests, which became mandatory on 1st October, could be an opportunity for landlords to make sure their properties stand out.
Special offer on EPC’s
The letting agency can carry out Energy Performance Tests with a qualified domestic energy assessor from as little as £75, for any landlords not just those on their books. For a limited period, Lettings Professionals will also refund the cost of an EPC, up to £75, against their fees when a property is let through the company. (subject to terms and conditions).
Using Epc’s as a selling point
Edward James from Lettings Professionals said: “Energy Performance certificates are not going to be popular for London landlords but they could be a good opportunity to identify new selling points for properties. If landlords make a small investment towards ensuring their property is energy efficient, it will have real appeal to prospective tenants especially in the current climate when everyone is keeping a close eye on their purse strings.”
What the legislation means for landlords
The certificates will become a requirement for every rental property before it can be marketed as of 1st October, whether the property is marketed privately or through a letting agent. The legislation states that landlords must have an energy efficiency report to hand out to prospective tenants along with particulars of the property, or they could be facing a £200 fine.
The certificates include a rating for each property, from A to G, based on how energy efficient it is. They also offer recommendations about how to improve energy efficiency, and the potential rating that the properties could achieve if the advice was followed. The certificates will last for 10 years although if improvements are carried out then landlords can voluntarily apply for a new certificate. More information can also be found on the Government official website.
Improving energy efficiency in a property
Edward James commented: “Landlords also need to be aware of the Landlords Energy Saving Allowance which offers a tax deduction of up to £1500 for landlords against their rental income. There are lots of simple improvements that can be made to make a property more energy efficient and the LESA (Landlord’s Energy Saving Allowance) will help to provide some financial support to make such improvements.”
Lettings Professionals is encouraging landlords to look into some of the simple measures that they can take to improve their energy efficiency. Their top tips are:
- Look into insulating lofts and wall cavities to the optimum depth of 270mm, to slash fuel bills
- Fit draught excluders onto windows and doors
- Fit insulating jackets over boilers
- Replace normal lightbulbs with energy saving lightbulbs
- Fix any dripping taps immediately
- Do not have the hot water cylinder set above 60 degrees Celsius – it is unnecessary and a big waste of energy
Most of these measures cost very little money and can make a dramatic difference to heating bills and energy efficiency, which will be a big plus for prospective tenants. Some slightly more costly measures that are worth considering if a property is due for renovation anyway include:
- Replace old boiler systems with modern systems – combi boilers tend to save a lot of energy
- Fitting double glazing will make a massive difference to the energy efficiency of a property
- When buying new appliances, always look for the energy saving recommended logo – even if the appliance is more expensive to purchase, the long term saving will be worthwhile.
It is also worth bearing in mind that tenants on benefits or low incomes may be entitled to a ‘Warm Front’ grant, to help with the cost of making homes more energy efficient, which will also benefit the tenant by lowering their utility bills.
A recent survey from the Royal Institute of Chartered Surveyors suggests that supply of rental properties is on the up, especially in London, making it more crucial than ever before that landlords are offering a competitive deal to prospective tenants.
Edward James at Lettings Professionals commented: “We are aware that many landlords view the new legislation as a big headache but it doesn’t have to be. We can arrange for Energy Performance tests to be carried out and then if landlords follow up some of the simple recommendations in the report they could turn their Energy Efficiency rating into a big asset.”
To arrange an energy efficiency test or for more information about the incentive available, please contact Lettings Professionals on 0207 100 1042 or e-mail clientservices@lettingsprofessionals.com