Energy Efficiency

As from 2008 landlords will have to produce an Energy Performance Certificate for each property they own.

The certificate includes energy efficiency rating, estimate of energy used and recommends what could be done to improve the efficiency of the building.

Landlords will not necessarily have to carry out the findings but they will have to be shown to tenants before they agree to rent the property.

The certificates cost £100-£150 and are valid for 10 years and will give tenants an estimate of how much the property will cost to run.

Estimated costs of heating, lighting and hot water will be listed in certificates plus savings to tenants if these were to be carried out.

Landlords are being advised to act on this now and make use of tax incentives, grants and discounts that are on offer.

The Landlords Energy Saving Allowance is available to landlords who rent out residential property and pay Income Tax except those who rent out rooms in their own home.

LESA allows landlords to offset the cost of features against tax. It would include loft insulation, solid wall insulation, cavity wall insulation, hot water system insulation. draft proofing and floor insulation. Since April 2007 landlords are allowed a maximum of £1,500 per unit.

There are a number of grants available and energy efficient light bulbs, loft insulation and cavity wall insulation are subsidised.

Points to remember

• Use energy saving products and appliances
• Check loft insulation
• Lag pipes and tanks
• Insulation cavity walls
• Fit new boiler and turn down thermostat