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Press release

Landlords face fines of more than half a billion pounds with the introduction of energy performance certificates on rental properties

20 Jul 2008

The National Landlords Association (NLA), the UK’s leading trade association for landlords, has said that UK landlords will face considerable fines if they fail to provide tenants with an energy performance certificate from October 2008. The total amount for UK landlords could exceed £500 million* and will come as a shock to many buy-to-let investors.

With the introduction of EPCs for the private-rented sector, details of the energy efficiency and environmental impact of a rental property will need to be made available to prospective tenants at the earliest opportunity. Although climate change may not always be a landlord’s first thought, an energy efficient property with lower fuel bills will be more attractive to cash-strapped renters.

An EPC is currently valid for 10 years and can be reused as many times as required within that period. Landlords do not have to commission a new EPC each time a new tenancy starts but they are required to give a copy of the latest EPC to new tenants. Furthermore, while landlords are not obliged to make any of the changes suggested on the EPC, measures which could be taken to improve the property’s energy efficiency and environmental impact rating are highlighted.

Today, the NLA has launched NLA EPCs, a brand new service which will provide landlords with some of the best value EPCs on the market.

NLA EPCs offers certificates for NLA members for only £69** including VAT per certificate. Once the EPC has been commissioned and paid for, landlords can track its progress online. Should landlords need any further support, there is a dedicated client support team on hand to answer.

Commenting on the launch of NLA EPCs, David Salusbury, Chairman, NLA, said:

“Many landlords across the country are already investing in energy saving measures in response to a growing market demand for environmentally-friendly properties. Although it’s certainly true that we would have preferred the market to have led this movement towards more energy efficient homes, the NLA, as always, is seeking to make it as easy as possible for landlords to comply with the new rules.”

For more information about NLA EPCs, go to www.landlords.org.uk and click on the appropriate icon.

* Figures from Mintel - Buy-to-Let: Financial Intelligence, March 2008 (Source: National Statistics/Mintel). 11.6% of all dwellings are accounted by private rentals. There are 25,081,000 households in total. Therefore, 11.6% of 25,081,000 households = 2,909,396 private rented households. If landlords neglected to obtain an EPC for each of these they could receive a fine of £200 per dwelling. Therefore, £200 x 2,909,396 = £581,879,200

** Non-NLA members pay £79 including VAT.

For further information, contact:
Steven Hilton, Media Relations Manager
Email:
Tel: 020 7840 8906 : Mob 07508 031 084

Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With almost 20,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities towards their tenants.