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Why are EPCs being upgraded?
The way the rating in the Energy Performance Certificates (EPC) is currently calculated, based on standardised data, leads to anomalies in its representation. Focusing as it does on cost, not the real-life energy usage and carbon performance of running a building.
For example, the energy performance rating system (EPC) used at present is based on the efficiency of heating a building using natural gas. This is because this has been the cheapest and the most effective form of heating, but when you use LPG or when you up-grade to an electrical heating system or a heat pump, the result is the EPC rating falling.
These inconsistencies and inaccuracies in the existing EPC calculation mean that property owners can currently pay out thousands of pounds for work that, when they come to test or to sell the property, they find they actually lowered their EPC rating.
The energy sector has been scathing about the system. The EPC rates buildings from A to G but experts are saying the current system is ‘not fit for purpose’ because the rating is based on the cost of energy used, not on the actual carbon emitted into the atmosphere.
It punishes people for installing heat pumps because they use more electricity and LPG gas because it’s more expensive than natural gas – it incentivises the use of mains gas over electricity or LPG.
Tom Spurrier, of the UK Green Building Council, a leading industry body, has said:
‘We have currently got a metric that incentivises gas because it is cheaper.’ If you install a heat pump, which is powered by electricity, your EPC rating may fall. Properties with Liquid Petroleum Gas (LPG) are also marked down because the gas is more expensive than mains gas.
So, what’s the replacement method?
The replacement is the Home Energy Model which will use a new Future Homes Standard assessment in which energy assessors will measure:
1 – all the windows at the property, rather than relying on assumptions based on the property’s age
2 – they will carry out additional assessment of rooms and lofts
3 – they will introduce of a new age band for properties or extensions built from 2023 onwards
4 – they will also consider the use of power diverters and battery storage, used in conjunction with solar panels
5 – finally, they will recommend the use of heat pumps more frequently.
This will change the framework by which energy efficiency is calculated to bring the focus instead on to carbon emissions. The assessments will be more in-depth, relying less on assumptions, more on measurements which should give a more accurate picture of the energy efficiency of a building.
The assessments should also provide more accurate information as to what improvements are necessary to bring a building up to a specific energy rating.
EPC surveys and performance ratings were derived primarily as a cost-based rating system, and while they do generate some useful insights, in their current form, the algorithms used produce some inaccurate assessments.
Higher cost of assessments
Inevitably, a more in-depth assessment will be more time consuming for an assessor and therefore the cost to the landlord is likely to be higher. Whereas the current EPC assessment takes around 30 minutes and costs anywhere between £60 and £75 using the Standard Assessment Procedure (SAP). This gives an EPC rating between A, highly energy efficient to G which is very inefficient.
What is RdSAP10?
The Building Research Establishment (BRE) gives information on its Reduced Data Standard Assessment Procedure (RdSAP).
RdSAP is to be the UK’s officially approved method for evaluating the energy performance of residential properties and used in generating future Energy Performance Certificates (EPCs).
RdSAP is used in assessing existing dwellings where the complete dataset required for a standard SAP (Standard Assessment Procedure) calculation is not available. Instead, RdSAP uses default values and data collected methods during on-site assessments by trained assessors to calculate energy performance.
The launch of RdSAP10 it is said will bring about some of the most significant changes to EPCs ever. The changes have been specifically designed to improve the accuracy of EPCs with Assessors less reliant on the use of “default” values.
More accurate EPCs
It is thought that more accurate EPCs will result in higher ratings on properties that have been assessed under the current EPC software. In all, 30 changes are being introduced to the assessment, examples include:
Insulation – previously assessed in increments of 50mm it will now be assessed in increments of 25mm with a new 10/12mm minimum thickness. This was not previously specified and therefore allows the recording on insulation that is less than 50mm
Windows – all widows will now be measured, benefiting properties with smaller windows or less glazing. The orientation of windows will also be recorded along with their age. Shutters and window insulation will also be considered in the assessment.
Loft conversions and roof rooms – Assessors will need to take additional measurements to account for the various construction types of common wall and gable walls in roof rooms. More data will need to be recorded to accurately reflect the construction types and insulation levels.
Wall thickness – wall thickness is currently included in EPC calculations, but the new version will register improved u-Values for thicker walls. This will benefit older solid wall properties. This will up-grade properties with solid brick and stone walls.
Hot Water Cylinders – the capacity will now be recorded as will the kWh/day figures, replacing the current options of small, medium and large cylinders.
Basements – significantly more data will now be recorded which will include u-Values for the walls. These will differ from above ground walls.
A New age band – for post 2023 constructions such as new extensions and loft conversions.
Lighting – All lighting will be assessed taking into account different lighting types such as LED with low energy bulbs.
Battery Storage – will be taken into consideration in the assessment when combined with Solar panels, not currently an option.
Air pressure leakage tests – currently only used for a new build property, this could be an additional option for owners to undertake to improve ratings.
Annual fuel running costs – will be taken into account.
Improvement recommendations – An air source heat pump is to be a specific recommendation along with solar and battery storage.
When will these changes come in?
The new method of assessment – RdSAP10 – is expected to be launched sometime this year. Assessors are currently being trained and the system is in its final stages of testing with the BRE and other Accreditation Bodies.
With EPC grade C now a definite new standard to be imposed on rental properties by 2030, landlords will be encouraged to improve their properties where necessary and apply for a new EPC under RdSAP10 when available.
Article Abridged from Landlord Zone
Venue – Reception Room, Plymouth Council House, Armada Way, Plymouth PL1 2AA
Price – £80 for members of SWLA, £100 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 1230 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
A Hastings landlord has been fined £10,000 after failing to provide a satisfactory Electrical Installation Condition Report (EICR) to Hastings Borough Council.
The council had requested that the landlord provide the certificate, which shows that electrical safety standards are met within a property. It is a legal requirement to produce the certificate when a council asks for it. The Housing Renewals team at the council worked with the landlord, and after he failed to provide the certificate, the council took court action. An appeal to the First Tier Tribunal (Property Chamber) by the landlord has been struck out for failing to comply with directions given by the tribunal.
Cllr Glenn Haffenden, lead councillor for Housing and Community Wellbeing, said: “Regular and timely checks of the electrics within properties is an important safeguard for occupiers as faults and issues with electricals may not always be visible. The consequence of faulty installations that go undetected may not only put occupiers at risk of electrical shocks but also contribute to other hazards such as fires.
“As a council we are keen to support our landlords who provide a much-needed contribution to the private rented sector in the town. Our team of officers will engage with landlords where appropriate to achieve compliance. However, where this is not appropriate or engagement is not forthcoming, we will not hesitate to take proportionate enforcement action. This protects occupiers but also helps to support a level playing field for those landlords who do comply with their duties and responsibilities.”
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 were implemented to ensure that electrical safety standards are met in properties in the private rented sector and cover a range of issues including: how and when checks of electrical installations are carried out, who may carry out checks and that certificates are provided confirming that standards have been met. Each Local Authority has the regulatory duties and powers to ensure compliance with these regulations and failure to comply can attract a financial penalty of up to £30,000.
SWLA remind all members to keep an in date EICR for each privately rented property. Diarise the re-inspection before each EICR expires, the expiry is usually 5 years but can vary.
A few facts about EICRs
An EICR is a report carried out to assess the safety of the existing electrical installation within a property and is used to describe its condition. Parts of the system that are reported on include consumer units, protective bonding, lighting, switches and sockets etc. Its purpose is to confirm as far as possible whether or not the electrical installation is in a safe condition. The EICR will show whether the electrical installation is in a Satisfactory or Unsatisfactory condition and will detail a list of observations affecting the safety or requiring improvements. These observations will be supported by codes:
Unsatisfactory Codes are:
A Satisfactory Code is:
Action is required if the EICR issued is Unsatisfactory. If an EICR contains a C1, C2 or FI code, it is unsatisfactory. If a C1 is discovered, the electrician will often take action to make safe the dangerous installation using temporary measures. Then, as is also the case with a C2 or FI code, it will be the owner’s responsibility to organise a repair, replacement or further investigation within 28 days.
A C3 code ‘improvement recommended’ is given to aspects of the installation that do not present a danger but will result in an increased safety standard within the property. Occasionally a C3 code may be attributed to an item that does not comply with current regulations but did comply at the time it was installed. A C3 code does not mean the installation is unsafe and should not impose a requirement to have work carried out on the owner. Where there are only C3 observations listed, this will result in a satisfactory EICR being issued.
If you receive an unsatisfactory report
Send a copy of the report with proof of remedial work being completed to the Local Authority within 28 days. This requirement was introduced to alert the Local Housing Authority to any properties which may have been substandard but are now safe. You must submit the unsatisfactory report along with written confirmation (appropriate certification as outlined above) to demonstrate you have had the required remedial and/or further investigative work done. It is your responsibility as a private landlord to do this and failure to comply could result in enforcement action being taken against you.
For further information see NAPIT landlord guidance; Microsoft Word – Landlord Guidance FAQs (napit.org.uk)
Article Abridged from Hastings Council and NAPIT
A summary of the measures in the Renters’ Rights Bill which was introduced to Parliament on 11 September 2024.
The Renters’ Rights Bill will:
Section 8 Grounds – Proposed Amendments
As it stands, here are the proposed amendments to the Section 8 Grounds (we have only included Grounds that will be relevant to our members, for the full grounds please see the gov.uk guide);
Mandatory Grounds:
Ground 1; The landlord or their close family member wishes to move into the property. Cannot be used for the first 12 months of a new tenancy. 4 months’ notice required.
Ground 1A; The landlord wishes to sell the property. Cannot be used for the first 12 months of a new tenancy. 4 months’ notice required.
Ground 4A; A property is let to full-time students and is required for a new group of students in line with the academic year. 4 months’ notice required.
Ground 6; The landlord wishes to demolish or substantially redevelop the property which cannot be done with the tenant in situ. Various time limits and/or notice requirements exist for this ground depending on the circumstances. The landlord and tenancy must be of a certain kind. 4 months’ notice required.
Ground 6A; The landlord is subject to enforcement action and needs to regain possession to become compliant. 4 months’ notice required.
Ground 7; The tenancy was passed on by will or intestacy. Possession proceedings must begin no later than 12 months after death or, if the court directs, after the date on which the landlord became aware of the death. 2 months’ notice required.
7A; Severe ASB/Criminal Behaviour. The tenant has been convicted of a type of offence listed in the ground, has breached a relevant order put in place to prevent anti-social behaviour or there is a closure order in place prohibiting access for a continuous period of more than 48 hours. Landlords can begin proceedings immediately – no notice period required.
Ground 7B; At least one of the tenants has no right to rent under immigration law as a result of their immigration status and the Secretary of State has given notice to the landlord of this. 2 weeks’ notice required.
Ground 8; The tenant has at least 3 months’ (or 13 weeks’ if rent is paid weekly or fortnightly) rent arrears both at the time notice is served and at the time of the possession hearing. 4 weeks’ notice required.
Discretionary Grounds:
Ground 9; Suitable alternative accommodation is available for the tenant. 2 months’ notice required.
Ground 10; The tenant is in any amount of arrears. 4 weeks’ notice required.
Ground 11; The tenant has persistently delayed paying their rent. 4 weeks’ notice required.
Ground 12; The tenant is guilty of breaching one of the terms of their tenancy agreement (other than the paying of rent). 2 weeks’ notice required.
Ground 13; The tenant has caused the condition of the property to deteriorate. 2 weeks’ notice required.
Ground 14; The tenant or anyone living in or visiting the property has been guilty of behaviour causing, or likely to cause, nuisance or annoyance to the landlord, a person employed in connection with housing management functions, or anyone living in, visiting or in the locality of the property. Or the tenant or a person living or visiting the property has been convicted of using the premises for illegal/immoral purposes, or has been convicted of an indictable offence in the locality. Landlords can begin proceedings immediately, no notice period required.
Ground 15; The tenant has caused the condition of the furniture to deteriorate. 2 weeks’ notice required.
Ground 17; The tenancy was granted due to a false statement made knowingly or recklessly by the tenant or someone acting on their instigation. 2 weeks’ notice required.
The current renting system will very much be overhauled. We understand our members may feel uncertain about the future of renting and what the changes may mean for good landlords. SWLA regularly meet with MPs, housing groups and housing advisory boards. In meetings, we are a voice for our landlord and agent members – we will continue to lobby for all changes within the sector to be fair for both tenants and landlords.
We will keep our members updated throughout the Bill to Act process.
For further information see Guide to the Renters’ Rights Bill – GOV.UK (www.gov.uk)
The UK Government has introduced the first version of the Renters Rights Bill, into parliament a process known as the ‘First Reading’ which took place on the 11th September 2024. Detailed scrutiny and discussion of the bill is expected after Parliament returns from recess on 7th October.
The Bill doubles the measures outlined in the previous Government’s Renters’ (Reform) Bill, which fell during the wash up sessions in the final days of the last administration.
If passed without amendment, the Renters’ Rights Bill would significantly overhaul the structure for private rented sector housing and repeal Section 21, alongside a number of other significant measures:
The legislation will also introduce:
Controls on rental bids and offers.
We will await further updates as the Bill goes through the full Parliamentary process, we will keep you updated as changes occur.
We are proud to be supporting Gas Safety Week 2024, taking place 9th-15th September.
Gas Safety Week is an annual safety week to raise awareness of gas safety and the importance of taking care of your gas appliances. It is coordinated by Gas Safe Register, the official list of gas engineers who are legally allowed to work on gas.
The theme for 2024 is Checking—Every Check Counts; from checking that you’re complying with your legal gas responsibilities as a landlord, to checking that you, and your tenants, know what to do in a gas emergency. Every check (no matter how big or small) helps to keep your tenants and your property gas safe!
Badly fitted and poorly serviced gas appliances can cause gas leaks, fires, explosions, and carbon monoxide (CO) poisoning. CO is a highly poisonous gas that can kill quickly with no warning, as you cannot see it, taste it, or smell it.
Landlords are legally responsible for the safety of their tenants. If you’re a landlord, you are legally obliged to make sure:
Here is a guide to some additional checks that you can do to stay gas safe:
For gas safety advice and to find or check an engineer visit the Gas Safe Register website at GasSafeRegister.co.uk. Alternatively, call the free helpline on 0800 408 5500.
To secure your place at the 87th National Landlord Investment Show in Bristol, visit www.landlordinvestmentshow.co.uk/25-september-bristol and simply register for free show tickets.
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The UK’s number one Landlord and Property Investment Exhibition is thrilled to announce its arrival at Ashton Gate, the home of Bristol City Football Club, on Wednesday 25th September 2024.
Marking the 87th live show to date, the one-day event will be packed with exhibitors offering excellent products and services and a full agenda of seminars by leading industry experts covering myriad helpful topics including Tax, Finance, Investment Opportunities, Legal Advice, Sales & Lettings, Insurance plus much more.
Prime Minister Keir Starmer’s government has ambitious plans for sector reform. From rent caps to mortgage guarantees, the proposals are likely to be significant for anyone with an interest in property investment or the private rented sector.
Afternoon panel debate: Westminster Charts a New Course: What Does It Mean for Property Investment in the West?, aims to explore the possible ramifications for landlords and property investors in the local area.
Now celebrating 11 years of delivering successful shows across the UK, the National Landlord Investment Show is committed to staging exceptional events aimed purely at the UK property investment community. With 50+ exhibitors and 25+ expert seminars, the National Landlord Investment Show remains the go-to event for seasoned and aspiring landlords, investors, and property professionals.
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Show founder Tracey Hanbury expressed her enthusiasm:
“Reaching 87 shows is an incredible achievement, and we’re thrilled to be heading to a city as exciting and vibrant as Bristol. The proposed changes to the sector are obviously causing some anxiety amongst the property investor community across the UK, but our goal since day one has been to provide an unrivalled platform that educates, connects, and empowers landlords and property investors. A huge thank you to our exhibitors, speakers, and Bristol Show sponsors: Aico, Alan Boswell Group, CJ Hole and HJ Collection.
What our sponsors have to say…
“As a company, we are thrilled to sponsor the first National Landlord Investment Show in Bristol. We believe that this event is an important platform for property professionals, investors and landlords to come together, share ideas, and learn from one another. We are committed to supporting the growth and success of the property industry, and sponsoring this event is just one way that we can contribute to this goal. We look forward to seeing the positive impact that this event will have on the industry and the wider community.”
Chris Hill, Managing Director, CJ Hole Bristol
“It was a great atmosphere at the National Landlord Investment show. It allowed us to reach out to new landlords that we would not normally be talking to, which in turn has given us great exposure over this key area in the industry. It’s definitely a worthwhile exhibition.”
Matthew Golding, Regional Specification Manager, Aico
“After co-sponsoring all of the shows in 2023, once again we found the shows an incredible way to get out there and meet new clients and present our services. I commend the whole team for the professional service and experience provided. Looking forward to what is in store this year!”
Luke De Stefano, Head of Distribution, HJ Collection
“Another great event organised by the whole team at National Landlord Investment Show. Great turnout of landlords and property owners that we were able to promote our services to. Also lovely to catch up with existing clients and companies that we work with. We’ve attended these shows from the very first event over 10 years ago and they continue to get better and better. Long may it continue.”
Steve Cox, Alan Boswell Group
For more information; 25 September Bristol (landlordinvestmentshow.co.uk)