IT’S a question we are asked all the time: “Do holiday lets need an energy performance certificate (EPC)?”.
Is it something not entirely clearly defined by the government. There are of course an awful lot of holiday lets on the Isle of Wight and Hampshire many of which will not have an EPC.
Basically, for a property being rented out as a holiday let to not require an EPC, it must be let out for less than 4 or more months a year, it must meet the definition of a furnished holiday let set by the HMRC, and – the rather confusing one – the occupier to not be responsible for paying the energy costs.
We’ve covered before the legal argument that yes, you could make a case that the occupier, i.e. the paying guest, is responsible by the very nature of paying money to stay in the property as this would go towards paying associated owner bills which includes energy costs. After all, cafe's and fast food outlets build ingredient costs into the price of a burger as it were which means we in a way pay for what goes into making it, so the recommendation has always therefore been you’re better ensuring you have an EPC than not to avoid problems in future.
There’s also a further exemption saying a property let out under licence to occupy doesn’t need an EPC. However, this too gets a little muddy because the occupier must prove they are actually on holiday and not personal or work business, and you should have a written agreement stating this. Not many owners and guests will have these, and it's hardly the owner's business to ask what their guest will be doing while staying and if they are actually on holiday, personal or business matters.
But this could all change in future. There’s a new Bill currently going through Parliament which could clear up any confusion if and when it becomes law. The Short-term and Holiday-let Accommodation (Licensing) Bill outlines a number of powers for local authorities such as the Isle of Wight Council and Hampshire County Council, when it comes to holiday lets. It essentially requires properties to be licensed to become holiday lets and to remove licences should there be problems at the dwelling such as noise, nuisance and safety concerns. You can read more on the government website.
Without going into the full details, one section is very important. It clearly states that holiday lets owners must obtain an EPC as part of the licence. It is of course someway off becoming law yet, and as of the date of this article it was only at the second reading stage so could change, but it is clear the government are looking at making it much clearer if holiday lets need an EPC or not. In addition, Labour fully support the plans and if the polls are to be believed, they may well be the next government in power.
The recommendation is therefore to ensure you have a valid EPC on your property to avoid any issues in future and avoid the rush to get your property surveyed and given a valid EPC certificate because there's no doubt a lot of owners will need one all at once if the Bill is passed.
If you need an energy performance certificate for your property on the Isle of Wight (IOW) or Hampshire including Portsmouth, Southampton and surrounding areas, contact us by emailing info@silverarchps.co.uk or call 07368838213