01/08/2018
HWB urges landlords to prepare now for next EPC rating deadline
Landlords need to be reviewing their asset schedules ahead of more stringent legislation governing the energy performance of buildings with a minimum EPC rating, says HWB Director Arthur Bell.
Since 1 April 2018 it is an offence to rent out a property on a new tenancy, both residential and commercial properties, without a valid Energy Performance Certificate (EPC), which normally means having a minimum energy performance rating of E.
Currently existing tenancies are exempt; however landlords are being advised to take note of the next deadline of 1 April 2020 when it will be unlawful to be renting any property with an existing tenant unless it has a minimum energy performance rating of E.
Arthur, who specialises in advisory services for landlords, said: “Non-compliance could result in fines of £4,000 and remortgage problems, so it’s important that all landlords take note of this date.
“There’s still plenty of time to ensure that properties are up to standard, but it would be advisable to plan ahead with a programme of improvements over the next couple of years in order to spread the cost. Leaving everything to the last minute could end up having a greater financial impact and put you at risk of having a poorly-rated property when other landlords already have favourable EPC ratings.
“Landlords should now be reviewing their asset schedules to identify the properties that fall below the standard and devising an appropriate and thought-through programme of works. Compliance is crucial but it is not the only aspect to consider – there are a number of other potential benefits, including reduced operating costs and energy-efficient properties being more attractive to tenants.
“Any capital expenditure may affect budget and profitability, so I would advise landlords to keep a close eye on the detail of their accounts in order to reduce the impact.”
For advice about EPC rating and compliance, contact Arthur Bell on 023 8046 1205 or email arthurbell@hwb-accountants.com. Find out more about our service on our property management page.
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