Does Your HMO Require An EPC?
9 October 2008
One Comment
Since October 1st, it has been made illegal to rent a property without an Energy Performance Certificate.
The reasoning behind this is that it allows tenants to choose between properties and it clearly marks how energy efficent the property is. The EPC will last for 10 years and has to be given to a tenant before they decide to rent a property from you.
Personally, I don't think having an EPC will make any difference to a tenants decision to choose one property over another. It may if the energy gains are so different but unless they are choosing between an 18th century cottage and a new build house - its highly unlikely.
So, if you have a HMO; do you need to have an EPC?
The straightforward answer is NO, the more complex answer is SOMETIMES.
Following legal advice, Communities and Local Government decided that EPC's are not required for bedsit-type HMO's. They only apply to self-contained properties and renting a room does not count as a self-contained properties.
So, where you have a HMO where the occupiers are sharing facilities such as communal areas and have a shared entrance, you do not need to have an EPC.
Where the SOMETIMES comes in is if you have a bedsit where the tenants pay for their own utilities via card or coin meters. Likewise, student properties or others which are let on joint tenances for the whole of the property will require an EPC.
The full information is found at www.communities.gov.uk/publications/planningandbuilding/epclandlordguide
If you don't have a HMO; then you will need to get an EPC. For a full and comprehensive review of what is required, I'd recommend that you pop over to House Finder who have written an excellent article on this subject:
http://www.housefinderuk.com/index.php?option=com_myblog&show=energy-performance-certificates-epcs-to-become-compulsory-for-landlords.html&Itemid=48
Image: www.freeimages.co.uk
The reasoning behind this is that it allows tenants to choose between properties and it clearly marks how energy efficent the property is. The EPC will last for 10 years and has to be given to a tenant before they decide to rent a property from you. Personally, I don't think having an EPC will make any difference to a tenants decision to choose one property over another. It may if the energy gains are so different but unless they are choosing between an 18th century cottage and a new build house - its highly unlikely.
So, if you have a HMO; do you need to have an EPC?
The straightforward answer is NO, the more complex answer is SOMETIMES.
Following legal advice, Communities and Local Government decided that EPC's are not required for bedsit-type HMO's. They only apply to self-contained properties and renting a room does not count as a self-contained properties.
So, where you have a HMO where the occupiers are sharing facilities such as communal areas and have a shared entrance, you do not need to have an EPC.
Where the SOMETIMES comes in is if you have a bedsit where the tenants pay for their own utilities via card or coin meters. Likewise, student properties or others which are let on joint tenances for the whole of the property will require an EPC.
The full information is found at www.communities.gov.uk/publications/planningandbuilding/epclandlordguide
If you don't have a HMO; then you will need to get an EPC. For a full and comprehensive review of what is required, I'd recommend that you pop over to House Finder who have written an excellent article on this subject:
http://www.housefinderuk.com/index.php?option=com_myblog&show=energy-performance-certificates-epcs-to-become-compulsory-for-landlords.html&Itemid=48
Image: www.freeimages.co.uk
Matthew,
You make some sound points there.
My wife and I have had so many investors and letting agents telling us that these EPCS will influence choices of tenants based on rating.
I am not normally a cynic but I just do not think tenants are that sophisticated yet in respect of making a decision on that basis.
Cheers
John
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