Green Deal EPC Rules Change For 2018

Posted on January 9, 2012 by editor
Posted in ECO Issues, Politics Of Property, UK Property Market Comment Tagged 2018, Change, EPC, Green Deal, rules

The Green Deal, which is timetabled to come into effect from October 2012, places a huge emphasis on reviewing the energy efficiency of both the UK’s residential housing stock and commercial buildings.

From July 1, 2011, the proposal suggests it will be a requirement to commission an EPC before marketing a residential and now non-residential building for either sale or rent. In addition, the current 28-day window in which an EPC is to be secured using what is known as ‘reasonable efforts’ will be reduced to 7 days, and if after that timeframe an EPC has not been obtained, the seller or landlord has a further 21 days to do so.

Illegal from April 2012

from April 2018, it will no longer be legal for landlords to rent out homes or business premises with an energy efficiency rating that is less than an ‘E’ on an Energy Performance Certificate (EPC). At least 682,000 properties would have to undergo some form of improvement in order to better their energy efficiency.Eventual objective is Green Deal, plus an objective to have all domestic and commercial properties requiring an EPC by 2015 – not just on properties that are being marketed for sale or rent.

Currently these are proposals and have to come before parliament to be sanctioned.

“Trading Standards Officers (TSOs) will have the power to request that the seller or landlord of the property in question, or indeed any person or company acting on behalf of the relevant person, must produce evidence that an EPC has been commissioned”

Cost of improving properties to fit the Green Deal is quite low in most cases & various “deals” will be available to help with costs. Whilst demand outstrips supply though there will be no pressure to do it. 1 in 6 landlord’s properties are currently in an F & G energy band, and & therefore, will “fail”the proposed Govt criteria. The only solution here is to improve.

The latest poll by the Association of Residential Letting Agents, found that over one-third of landlords (35%) do not know how their properties score with EPCs. ARLA called for the Government to help landlords to achieve minimum standards, calling for the Landlords Energy Savings Allowance to be extended.

Ian Potter, operations manager of ARLA, said: “The clock is ticking for the private rented sector to improve its environmental performance but the investment just isn’t there to ensure that this change takes place in the Government’s time frame.

“ARLA has campaigned for the Government to incentivise – through tax relief – the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock.”

The Green Deal will offer landlords upfront access to funds so they can improve standards, it could be the tenants, as users of the properties, who will have to repay the loan. Seems a bit odd to us, what do your think?