EPC penalties 'could top £500m'

The total value of eco-penalties that will be dished out to landlords with property to rent in London and elsewhere could top £500 million.

That's according to the National Landlords Association (NLA), which has warned its members that many buy-to-let investors remain oblivious of their duties under new legislation.

The introduction of compulsory Energy Performance Certificates (EPCs) means that all landlords must now provide prospective tenants with a paid-for energy efficiency rating of their dwelling.

And yet despite comprehensive advertising among industry groups and in the general press, a large number of investors have apparently failed to prepare for their obligatory rolling out on October 1st.

In sharp contrast to their collective £500 million bill - which will only be compounded by losses arising from vacant properties - the NLA noted that the savviest landlords are already fully prepared.

"Many landlords across the country are already investing in energy saving measures in response to a growing market demand for environmentally-friendly properties," commented NLA chairman, David Salusbury.

He added: "The NLA, as always, is seeking to make it as easy as possible for landlords to comply with the new rules."

Published 21st July, 2008

© 2008 Estates IT Limited