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As of 1 October, all properties (including private, registered social landlords and local authority) will require an energy
performance certificate before they can be rented.
The Housing Act 2004 and the Energy Performance of Buildings Directive give a legal requirement for all property owners to
provide an EPC to new tenants. Penalties for failing to provide an EPC have not yet been fully decided, but there may be
financial consequences for landlords who do not comply.
As it stands, the government has recently announced that rental EPCs are valid for up to 10 years. There is speculation in the
EPC industry that this validity period will in time be re- negotiated and made shorter.
There has been some limited marketing around these changes, but there is still widespread confusion about many of the issues.
One of the major problems is that the government still hasn't finished writing a lot of the legislation, and so it can't market what
hasn't yet been set in stone.
There is also still confusion on the level of property checking and data required for the cloning purpose.
What is clear is that good and up to-date information of all properties is required to give an accurate EPC assessment. This
needs to include details such as levels of roof insulation, boiler type, cavity wall insulation, age of building, number of rooms,
extensions, and so on.
Local authorities face the same problems as EPC providers, such as a lack of concrete
information from the government. However, as they are landlords on a large scale,
issues such as staffing will become a problem.
Some local authorities and social landlords will already have working knowledge, through taking part in the government pilot last
September. This was a very small-scale pilot and the impact of the legislation is yet to be fully appreciated.
Should the legislation require all properties to provide an EPC at renewal of contract, and should the government confirm that
they are to last 10 years, there will be a huge surge of demand for EPCs within the first 12 to 18 months, and very reduced
activity afterwards. This could put significant short-term pressure on local authorities, both financially and logistically.
With the legislation going live in less than three months, local authorities must either act now or contract an outside EPC
provider.
EPCs can only be completed by accredited domestic energy assessors. To train and qualify as a DEA takes on average 16 weeks
and costs approximately £2,500. This timescale includes significant amounts of 'onsite' work and experience. The process can
take longer should the DEA have no previous experience.
However local authorities decide to provide their EPCs, they will still have to put in place extensive training programmes for their
staff. Even if they decide to outsource and hire external domestic energy assessors, local authorities will still have to educate any
staff dealing with EPCs in what can be a complex set of legislation.
Should local authorities decide to train their own domestic energy assessors, they must consider both how they will fund the
initial financial outlay for training, and the implications of limited internal opportunities for these staff after the initial surge of EPC
work is completed.
It is widely believed the government will soon start to use the EPC rating as a way of rating property schemes as eligible for
grants. Properties that do not hit minimum standards may become ineligible to rent.
Working within the social housing sector will also bring with it a number of other challenges in terms of difficult tenants and
those with special needs. An EPC can only be completed after access to a property, and we have found that the tenant will often
require written notice before accepting an appointment. Some tenants also demand a password identification system, and the
provider will need to handle this requirement.
Paul Staley is managing director of Energy Reports and Surveys Ltd, the UK's largest provider of energy performance
certificates.
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