Not sure I am behind the times here but just found out that all rental properties in the UK will need to have an EPC from October 2008. This certificate will be valid for 10 years and is a legal requirement for all new tenacies (existing tenacies are exempt).

The EPC will cost between 80 and 100 pounds and applies to all properties in a building and so a block of 10 flats which are all rented out will require 10 certificates.

Quite a nice windfall tax for the government.

There is no legal requirement to improve the rating of your property, but the rather flimsy rational which is given for having this EPC is that it helps tenants to decide on how much they will be paying for bills during occupancy and how "green" their accommodation is.

Am I alone in thinking that this EU driven directive is another toothless piece of legislation which is only designed to raise revenue for the Government?

Hi Al

So if you start a new tenancy you'll need to to get an EPC at 80 quid minimum.

What happens when that tenant leaves and you start a whole new tenancy? The Certificate may be valid for 10 years, but from the way you have described it you'd need to get another one?!

Revenue generator indeed! I might ask our UK expert to look into this and produce an article on it - could have costly implications for those with sizeable portfolios!

Hi Ben,

If you obtain a certificate for a tenancy starting after 1.10.08 you can use the same certificate for 10 years regardless of how many new tenants you have in that accommodation.
This is the current situation, but I would not be surprised if it would have to be updated more regularly....the argument being that it will quickly be out of date and therefore rather than scrap it as a toothless piece of legislation, it will need to become more relevant and therefore more expensive.

Gotcha. Thanks for that.

Yes, just a bit behind the times I'm afraid. I first mentioned EPCs in Landlords Clinic in April 2007 and have updated the information in various subsequent articles at Property Secrets. In fact, Government signed up to this with EU long ago and - having agreed to it - they then had to figure out how to implement it. It's actually the main reason why we got the disastrous and much maligned Home Information Pack (once called the Seller's Pack). No one wanted it, but Government had to bring it in because it knew it was the only way to get EPC legislation through the door. EPC's for rented properties is just a follow-on from that messy bit of regulation.

Tony B

I meant to add a bit of news to the last message ... the EU Parliament are due to review the concept and introduction of EPCs next year. It is rumoured (and expected by some) that once all properties in the owner-occupied and rental market sectors have an EPC, some of the 'suggested' improvements contained within the assessment and certificate might become a mandatory requirement. The push is on to address environmental issues and with ten of the hottest summers on record since 1990, more action is being demanded by influential agencies and individuals to ease the situation.

It is also interesting to note that a national newspaper recently tested the value of EPCs by having two different assessors examine the same property. Few will be surprised to learn that each assessor came up with different values and different suggestions. Continuity seems therefore to be a major issue - and particularly since some assessors won't even go into a loft space to look at insulation or roof condition, because it infringes their health and safety limitation.