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'Get moving' on energy performance
2008-12-23
From October 1st landlords faced a new legislative addition to their to-do list in the form of energy performance certificates (EPCs).
Following the effect of the economic downturn in driving down house prices, professional landlords looking to expand their portfolios in the new year might find they can rise above competitors in the rental market by ensuring that their properties offer a high energy performance rating.
Yet, according to industry website Landlord-EPC.co.uk, which has been set up in the wake of the introduction of EPCs, many landlords are unaware of the grants they could have access to when upgrading the environmental credentials of their properties.
A spokesman for the firm this week commented: "We have been surprised at the limited number of landlords who are aware of these grants and allowance.
"Through the energy performance certificate process we are finding landlords are able to cost effectively improve the standards of their properties, which in turn is making them more attractive to prospective tenants."
As green issues seep ever deeper into the public's consciousness amid growing concerns about climate change, the spokesman noted that the energy efficiency of rented homes is an issue which is now receiving closer attention.
Because greener homes cut fuel bills for both tenants and property owners, thereby reducing the impact of energy use on the environment, EPCs could become an important marketing tool for landlords.
This is because all landlords must provide tenants with an EPC before a contract is signed or they face being fined.
For buy to let mortgage holders feeling the pinch, the Landlord Energy Saving Allowance (LESA) could help.
The scheme enables landlords to claim a tax rebate on the income of a residential property up to the value of £1,500 after they have increased its energy-efficiency rating.
Scotland is also providing financial assistance for energy-saving measures.
Ahead of the introduction of EPCs in Scotland next month, the country's government this week launched a new scheme offering interest-free loans from £1,000 to £100,000 which private landlords can access to make improvements to their homes.
Enterprise minister Jim Mather said: "A waste of energy is a waste of money. In a global economic downturn, we will take every step we can to keep the Scottish economy moving."
In addition, National Landlords Association chairman David Salusbury said by preparing tenants for the worst in advance of the winter weather, landlords could save themselves thousands of pounds.
"The onus is on the landlord to make sure they [tenants] are aware. The cost of not doing so could be considerable," he noted.
Loft and cavity wall insulation, as well as double glazing, are among the basic steps landlords can take to save energy in their properties.
Rented accommodation owners could also demonstrate their green intentions to tenants by installing energy-saving light bulbs, conducting regular checkups on boilers and by advising occupants to not leave electrical appliances on standby.
Less efficient and poorly-maintained homes can come back to haunt landlords in the winter months as problems such as burst water pipes or leaking roofs can be expensive and inconvenient to fix.
Indeed, after research by the UK Statistics Authority published earlier this month showed that the average energy-efficiency rating for housing stock is increasing, with seven per cent of houses in the A to C energy-efficient bands in 2006 compared to two per cent in 1996, now could be a good time for landlords to think green as part of their property management strategy.
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