Has energy law gone too far?

Sep 30 2008 By Patrice John

From tomorrow all properties built, let or sold in England and Wales will need to state how energy efficient they are. Energy Performance Certificates are now a legal requirement due to European law. But with the housing market at a near standstill and landlords in desperate need to keep tenants, is this a welcome move for the housing industry? Or is the need to be environmentally friendly too important to ignore it?

Environment correspondent PATRICE JOHN explores the issue.

* THE ASSESSOR

JONATHAN Parkes, from Walsall-based Midland Assess Energy, is an energy assessor who has been involved in the property business for more than a decade.

He carries out assessments on both domestic and commercial properties and says the introduction of EPCs are a good thing for the environment.

He says: “It’s not a matter of whether they are good or bad for the industry they are now part of European law.

“I don’t think they are a bad thing as they are going to make people more aware of how much energy they are using and if it reduces the amount of CO2 produced in the UK then it can only be a good thing.”

He also says home owners should not be worried about the costs of getting EPCs because in most cases they are valid for a decade.

He says: “These assessments are carried out once every ten years and if you think about it most people who buy a property to let it and then eventually sell it may only have to have one EPC during that whole time.”

Mr Parkes believes it will take some time to see the impact of EPCs, but over time they will become a normal part of the housing business.

“They will not have an immediate impact,” he says.

“I believe it will be a small awareness-raising thing and if energy costs start to rise then people will take it much more seriously.

“A lot of properties I’ve visited have landlords who have lots of bedsits and they may only have one boiler for the entire property.

“An EPC shows them where they could do some work to change things and possibly save money.”

When carrying out assessments, Mr Parkes says assessors need lots of information about the property including whether it has been insulated, if this insulation is in the roof or cavity walls and details of the age of the boiler.

* THE PROPERTY DEVELOPER

THOUSANDS of landlords and property developers across England and Wales have had to prepare for the introduction of EPCs.

The British Property Federation represents property developers and owners across the country.

Policy advisor at the BPF Patrick Brown says his members welcome the introduction of EPCs but are keen the quality of assessments remains high.

“It is still very early days and the European Commission is now reviewing this legislation but it could take years before anything changes,” he says.

“I think EPCs are good because they provide additional information for occupiers when they are thinking about letting a property.

“I think they do that job very well, but our members want to make sure they maintain their quality to make sure EPCs are useful.”

He says they are a welcome move for the industry and many BPF members began to commission their EPCs before the legislation came into force.

“Most of our members who have a large number of properties began to work on their investment portfolios well in advance. EPCs are prompted by transactions but as it has transpired over the course of this year, transactions have not been as brisk and plentiful as they were.

“The take up for EPCs is not as rapid as people thought because there are less transactions prompting them.”

Mr Brown says he hopes the recommendations report that is part of the EPCs is eventually strengthened as part of the legislation.

He says: “We would like to see the recommendations of EPCs being strengthened. As it stands, it is very difficult to make investment decisions based purely on an EPC as our members have to look how long it would take to get a ‘pay back’ on the investment made when compared to number of rentals they get.”

Mr Brown says the BPF have been working closely with the UK Government on this issue and will continue to do so.