Landlords given fine warning

The National Landlords Association (NLA) has warned UK landlords they will face considerable fines if they fail to provide tenants with an energy performance certificate (EPC) from October 2008.

The total amount for buy-to-let landlords could exceed £500m 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.

David Salusbury, chairman of the 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.”