Previously we did a blog article dispelling some of the common myths around energy performance certificates (EPCs) and promised we'd provide a further article.
Below is a further five myths we dispel about EPCs.
Energy Performance Certificates are Only a Guide
This is one of the main myths around EPCs that many landlords inadvertently misunderstand. Currently, if you rent out a property, by law it must have a valid energy performance certificate of at least an E or above.
If a property is being rented out and is rated either an F or G, or does not have an EPC at all, then legally you must bring the property up to at least an E or obtain an EPC certificate. Failure to do so could result in a fine of several thousand pounds per property. If you need an EPC, including here on the Isle of Wight (IOW), get in contact with us via our contact section. There are proposals to bring the minimum level up to a C by the end of 2025 for new tenancies and by the end of 2028 for existing tenancies although this remains subject to government approval and at this stage, it is not fully confirmed.
Installing Modern Efficient Electric Heaters Helps my EPC
This is something we have come across on more than one occasion when carrying out energy performance certificate surveys on the Isle of Wight. It is important to remember EPCs are primarily a cost based certificate, so installing electric heaters that use on-peak electricity will negatively affect your EPC rating.
Salespersons may be great at telling you that you are getting the most ultra high efficient electrical heating system controlled by an app, Bluetooth and which monitors and adjusts itself to temperatures, but that won't help your EPC rating.
If you were instead to install storage heaters for example that run off a dual rate electric tariff, your rating would be positively affected.
The way EPCs are calculated may change of course, and we are expecting a new version of the industry-standard software used to calculate ratings to be available this year, but currently we would recommend you seek advice first before settling on what measures you wish to install.
Sourcing an Energy Report, which is very similar to an EPC and gives you an insight into what your property will achieve before you install any new measures of equipment, could save you thousands of pounds.
My EPC Rating Will Stay the Same After 10 Years
It is very likely that if you do not change anything in a property in the 10 years since your last EPC, that your rating will more often than not decrease. This may only be by a handful of points, sometimes it may be a lot more, but it is important to remember things like the boiler is 10 years older, the loft insulation has been pushed down by the weight of items on top and is not as thick, the methodology for calculating EPCs has changed in 10 years - we could go on.
It is also entirely possible a new survey may record something different compared to before as an assessor may have a differing opinion as to certain aspects of the building such as its main fabric.
Although a previous EPC is a good guide, rarely will the rating be the same after 10 years.
Holiday Lets do not Need and EPC
While there may be some truth to this, holiday let owners are advised to ensure all their properties have valid EPCs of E and above. The law currently states that a holiday may need an EPC provided it meets certain requirements. Firstly, if it is let out for less than 31 days at a time, which lets face it, most of them will be.
Secondly is if it rented out as furnished holiday let as defined by the HMRC, which without getting into full details, most will.
The third is if the property is let out for four or more months of the year.
You're reading this as a holiday let owner and have probably ticked off numbers 1, 2 and 3.
The final one is where it gets a little grey. The government state holiday lets will require an EPC if the occupier pays the energy costs. You can interpret that how you wish, given 99.99% of owners will not directly break down and charge energy costs on a bill, however the counter argument is that yes, occupiers are paying the energy costs by the very nature of renting the dwelling out as they would be built into the bill.
The law goes on to state the property must meet all the conditions of a furnished holiday let as defined by HMRC and the occupant must not be responsible for the energy costs in order for an EPC not to be necessary.
Therefore the recommendation is to obtain an EPC if you do not have one for your holiday let(s) to avoid any potential issues.
EPCs are Expensive
While we all have differing interpretations of what expensive may be, especially during the cost of living crisis, an EPC for a domestic property is not something that costs hundreds of pounds. Many certificates are available for a set price up to a certain number of bedrooms in a property. Our prices are £65 for a standard certificate up to a four bed property which is very competitive.
The above are just some of the more common myths we come across and hear. If you need an energy performance certificate (EPC) or an energy report, including here on the Isle of Wight (IOW), just get in touch and we'll be happy to help.