Association of Cornish Property Professionals June 2016

PSG Cornwall - Cornwall’s largest supplier of Searches and Reports to Cornwall’s Solicitors Supplier of EPC’s, Floor Plans, Identity Checks, Referencing and associated services to landlords, letting agents and estate agents A presentation by: Dr Simon Gill (Managing Partner) Ed Trathen (DEA) EPCs - An Update

Tenants of properties that have a current EPC rating below E can request that their landlord makes specific improvements to the property as outlined on an EPC, Green Deal Advice Report (GDAR) or Chartered surveyor’s report, in order to increase that rating to E or above From 1st April 2016…

The tenant must: Specify what improvements they require; Supply the EPC, GDAR or surveyor’s report; Secure the funding; Make good after improvements made The Landlord must Respond within 1 month stating: Refusal to comply with registered exemption or Commence works within three months …From 1st April 2016

A tenant is able to request consent to install energy efficiency measures as long as: The measure is one of the energy efficiency measures listed in the regulation, or is a measure to be installed in order to connect to the gas network; and The tenant has a way of funding the measure at no cost to the landlord. For a request to be valid, the tenant must specify and provide details of the energy efficiency measure(s) they wish to install, and provide written evidence to the landlord of either: Any Green Deal Finance Plan, demonstrating that the package is fully funded, through Green Deal finance and/or ECO, grant or tenant funding, or Where works are proposed to be paid for without Green Deal finance, the tenant must provide evidence of quotes for the improvements from an authorised Green Deal Installer or installer who meets relevant installer standards. Tenant Request Process

 If the landlord has obtained a written opinion advising that the improvement is not appropriate due to its potential negative impact on the fabric or structure of the property.  If a tenant of the same property has submitted a request to the landlord within the previous six months, and the landlord has complied with this request  If the landlord has been served a notice under Section 20, 21 or 43 of the Housing Act 2007 or under section 265(1) to (4) of the Housing Act 1985  If the landlord has a report from an independent surveyor stating that the improvement(s) would result in a reduction of more than 5% in the market value of the property.  Temporary buildings with a useful span of less than two years, and buildings that are scheduled for demolition or sites that are to be redeveloped are not covered by these regulations  The property is also exempt if it does not have an EPC, however once it does have an EPC, the tenant will be able to make requests. Landlords must log their exemption on the Private Rented Property Exemption Register Reasonable Grounds for Refusal

Lenders are already taking note Mortgage offer withdrawn due to “F” rating Changes had to be made before exchange: Energy Efficient lightbulbs New thermostat BUT… the six big energy firms responsible for funding ECO work have used up their allocation this year Why is this important?

A landlord must not grant a new tenancy on any domestic private rented property that falls below the minimum E rating (unless an exemption has been registered) From April 2018 From April 2020 A landlord must not continue to let any domestic private rented property that falls below the minimum E rating (unless an exemption has been registered) EPCs start to expire and will need renewing upon change of tenancy From August 2017

e.g. Granite end terrace, night storage heaters (modern, not high heat retention) 75mm loft insulation Getting that E Rating…

Increase Loft insulation from 75mm to 270mm (circa £400)

Thank you for listening If you would like any advice on EPC’s please contact: Green Deal Accredited DEA Ed Trathen