Electrical Certificates – Why Every Landlord Should Have Them

As a landlord, you might be aware that there will be a change in the law with regards to electrical checks in all rented properties. That’s not compulsory as yet; however, we would urge all landlords to be ahead of the game and make sure that regular electrical checks are carried out on properties, and especially on new tenancies. Here’s why.

The risks

Imagine if you picked up the phone in the middle of the night to be told that there was a fire at your rented property. As horrific as that news would be, one of the first things that the fire department, the police, and the insurance company would check is whether or not the electrics and electrical appliances within the premises were safe, or whether they could have been the cause of the fire.

And if that were the case, who do you think liability would automatically be with?

If you fail to produce a valid electrical certificate, it could very well be you, the landlord. That would mean that not only do you risk prosecution, but it’s highly unlikely that your insurance would pay out.

But, if you have a valid, up to date certificate from a qualified electrician, then you have proof that you have done everything you can to ensure that the electrics in that property are safe. In that case, liability would no longer lie with you as the landlord, but with the electrician, as the question would be whether he had completed the work properly, or with the tenant, who has a responsibility to take care of the property while he or she lives there.

Is it law to have an electrical certificate for my property?

It will be, as right now Government are in processing a law which will mean that all rented properties will have to have electrical checks every 5 years. However, until that time, most agencies are recommending that their landlords get ahead of the game and make sure that all new tenancies start with a valid and up to date electrical certificate, before the tenant moves in.

That’s because, under the Consumer Protection Act Section 37 and Section 19, you have a responsibility to guarantee that your property is safe and fit for tenants to live in. And having an electrical certificate is part of that responsibility.

What will the new law mean for landlords?

Landlords will be required to have electrics checked in their properties every 5 years. This is mandatory, and must be carried out by a qualified electrician. This will be phased in over 24 months; in the first year, all new private tenancies will be affected, and in the second year, all existing private tenancies will also have to adhere.

If a property has recently had an electrical installation condition report (EICR) and has a valid certificate, then the property will not be required to have an inspection until 5 years has lapsed since the date of issue.

What will the required checks include?

The new legislation will require 5 mandatory recommended electrical safety features, which are:

What’s the difference between an EICR and a PAT test?

When we talk about getting an electrical certificate for your property, we’re really talking about the EICR – this is a test carried out by a qualified electrician, and tests the infrastructure of the properties electrics. As detailed above, this includes the wiring, units, plug sockets and switches etc.

A PAT test is really there for the appliances within that property. That would be anything that you include as portable appliances in the property, which might be things like a fridge or freezer, electric oven, dishwasher etc. It’s not mandatory for you to have a PAT test, but some landlords like to get one if they do include these appliances, as again, it provides an extra layer of cover if anything should happen.

In conclusion

While it’s not law to provide an electrical certificate at the time of writing, it’s highly recommended that you obtain one. It’s a small price to pay for peace of mind that your property is safe, and that you won’t be held accountable if something should go wrong.

The Government will be changing the law on this soon, so get ahead and make sure that you’re properties are protected, if not on existing properties, but on all of your new tenancies going forward.

Landlords – Are you compliant with the latest Minimum Energy Efficiency Standards?

Concentric's Compliance Director Dawn Bennett discusses the MEES issue at one of our recent landlord seminar events:

There’s no getting away from the fact that there have been a lot of changes in legislation in the lettings industry over the past year, not least updates in the law surrounding energy efficiency. This has been quite a big one, because there is currently a huge buzz around the need for us all to be more aware of our environmental impact, from the materials we use every day, to how we reduce the amount of energy in our businesses and in our households. 

So let’s take a look at what’s changed, and how we as landlords and agents need to look at energy efficiency within the properties that we rent out, along with the potential hurdles that might present. 

MEES – what does it mean? 

For the past 10 years, all let properties have been required to provide tenants with a copy of the Energy Performance Certificate for their home. You’ll see these also on any electrical appliance you buy, depicted by a colour coded chart along with the details of the efficiency level. It’s meant to give consumers an indication of how energy efficient the product is, so that they can make the decision about their own impact environmentally. In terms of property, things such as insulation, doors and windows, lighting, how the home is heated etc. are taken into account. 

As of 1st April 2019, all properties rented out or renewed will be required to have an EPC rated at E or above. If the property currently holds an F or G rating, it is illegal for new or renewed tenancies to be issued. 

If you have properties already tenanted, they are currently not required to comply until 1st April 2020, when every rented property will be expected to be at the required standard, and properties which fall at F or G rated will no longer be legal. 

Where can I find the current EPC for my property? 

An EPC certificate is valid for 10 years from the date of issue, and copies can be obtained for free by searching the EPCregister.com website. 

Why is improving the energy efficiency beneficial? 

There are numerous reasons why having a higher rating of energy efficiency will be attractive for perspective tenants – not least the cost impact. The average annual cost of a G rated home is £2,860. In comparison, a property rated E is £1,710. So you can see from those statistics that the potential savings in energy costs alone would mean that a property becomes much more attractive in the rental market. 

As well as this, people are becoming much more aware of their impact on the environment, and what’s more, are becoming much more savvy. An energy efficient home offers a tenant not only a more comfortable environment which cost less to run, it also means that they can feel a lessened responsibility towards their personal carbon footprint. Many renters now are consciously searching for properties which have better standards of insulation, modern heating and boilers, and even ‘green’ energy options such as solar water heating etc. A property which can promise some of these options is much more attractive, and is likely to give a higher return, and be filled much more quickly. 

How can I improve the energy efficiency in my property? 

Probably the biggest issue with properties which have a low energy efficiency rating is that of insulation and poor heating. Older properties in particular can be uninsulated, draughty, and poorly lit. In these cases, much improvement and investment might be needed to bring them up to standard, to include things like cavity wall insulation, roof insulation, double glazing, and modern boilers and heating systems. These kinds of improvements are likely to be expensive in many cases, but essential if you expect to rent out a property without falling foul of these new regulations. 

Some details of what is included in your particular property can be found on the EPC, and a guide of improvements, although not in great detail, are also included as advisory notes. It may serve as a useful starting point for some landlords. 

Things which you might consider are: 

Failure to comply 

It is the responsibility of the local authority to enforce notice where they believe there to be a breach in compliance. It’s worth noting that notice can be served up to 12 months after the suspected breach, so in the event of the property being sold, it is vital for landlords to hang on to any proof of compliance. 

A penalty of up to £5,000 may be served for landlords who fail to comply, or fail to make improvements after the notice period.