Five reasons why landlords should be interested in energy efficiency

Whatever else 2008 is remembered for, the weather this year is certainly something we might prefer to forget. Relentlessly cold and wet, some of us are now even enduring snow.

While it's cold outside we present five reasons why landlords may want to consider the energy efficiency of their properties.

Making improvements may improve the value of the property overall. Whether you own properties for the long-term or are renting out a home which you cannot sell immediately, regular checks on the fabric of the building are advisable. Energy efficiency improvements should cut down on the risk of damp, condensation or mould growth in the property and any improvements will be demonstrated in the EPC that you will have to provide when you come to sell. Keeping the fabric of the building in order should help to keep the property attractive to prospective buyers in due course and may be of some assistance in maximising its value.

Tenants with lower fuel bills and more comfortable properties may be more inclined to stay for longer, reducing the cost of void periods. Long-established landlords will know that high turnover and long void periods cost money and anything that can reasonably be done to reduce this cost should be considered. Many landlords have already made energy efficiency improvements, not through any desire to save the planet, but in response to requests from tenants to improve the glazing or replace the boiler.

The Government is actually giving landlords money to make these improvements. The Landlords Energy Saving Allowance enables landlords to claim back the cost of certain energy efficiency improvements up to a maximum of £1,500 per dwelling. The allowance covers cavity wall and loft insulation, dry-lining for solid walls, draught-proofing and hot water insulation. The allowance can be claimed when completing the annual tax return. Further information should be available from your local tax office.

If you're not tempted by these incentives then you should be aware that in England and Wales landlords are now obliged to provide an energy performance certificate for any new tenancy which started after 1st October 2008. The certificate, which has to be produced by an accredited domestic energy assessor, shows the current energy efficiency rating for the property as well as recommendations for improvements which could be made. Landlords have to make the EPC available to all prospective tenants and have to provide a copy to the final tenants before the tenancy agreement is signed. Failure to make the EPC available will result in a fine of £200 for each property for which an EPC has not been prepared.

With a glut of properties on the market competing for tenants it is possible that a better energy performance rating may make a property more appealing to prospective tenants. In the current straitened times tenants may be more inclined to take into account the likely running costs of a property in choosing a property to rent. In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants. ENDS

Elizabeth Brogan, Senior Policy Officer, National Landlords Association