EPC Certificates for 1977 Rent Act Tenants

[Katherine Parsons]

Is there any information you can point me to that deals with this topic? It is unlikely that I will be able to get my properties up to a Band C in time for 2028 and I have sitting tenants who are, by law, entitled to stay put in their properties and can't just be evicted because they have a right to stay under common law for life. Has anyone else had this problem?

[ash72]

As details aren't confirmed by the government, the guess is you'd have to pay 10k worth of improvements and then you would get an exemption on the property for the next 10 years, and pay again every 10 years to maintain the exemption.

Alternatively you'd have to sell the property with the sitting T's, as I'm assuming they are on very low rents and paying 10k worth of improvements to get the exemption does not make financial sense.

[jpucng62]

ASH72 is correct - but we live in hope that the legislation as proposed may change or be delayed.

In your situation here is likely to be an exemption or some sort. If the work is very invasive your tenants could refuse to have it done, or worse case scenario you do the £10k of work & it will allow you a rent rise (material changes do) & potentially increase the value of the property.

[Katherine Parsons]

Thanks. But who would I sell to? I am unable to benefit from keeping the property any prospective buyer would have the same thoughts.

[boletus]

Thanks. But who would I sell to? I am unable to benefit from keeping the property any prospective buyer would have the same thoughts.

It depends on the age of the tenant and any succession rights, but you could probably knock it out at auction for half price.

[DPT57]

I think that you're supposed to spend £10k on energy saving improvements and if this doesnt get it to a C, you're still allowed to let it.

[Hudson01]

Thanks. But who would I sell to? I am unable to benefit from keeping the property any prospective buyer would have the same thoughts.

Wow, i had not thought of this myself, i do not have such properties (thank god), but the EPC C debacle will cost landlords like yourself a fortune, i may be inclined to sell now and maybe get a buyer who is not so aware of what is coming over the hill. I will certinly be selling mine (standard AST properties) as they will cost me a forutne to get to a C, and i am simply not prepared to do it..... so it will be evict and sell time, for the lot of them. I do not evny your situation.

[flyingfreehold]

i am familair with this situation and there is more latitude towards sitting tenants under the rent act. I spoke to Grainger plc who are the largest landlord of lettings of this type in the country. In practice your tenants may be prepared to write a letter saying that they are unwilling to allow access for major works. I have one with Alzheimers and the family wont let us in to make the many changes that would be required . That one is EPC G, Exemption has been registered for five years

[Hudson01]

In practice your tenants may be prepared to write a letter saying that they are unwilling to allow access for major works . That one is EPC G, Exemption has been registered for five years

Now this could be a game changer, if this is allowed in the new rules then i am sure my tenants would write me such a letter...... if it meant they are not evicted ! Because as sure as the Sun rises if i had to get my properties to a C then i would sell, and they WOULD be evicted.

[jpucng62]

Until the legislation is actual written we really have no idea what we need to do and by when. Typical of this Govt - lurching from one crisis to the next & making it up as they go along!

[Codger]

Would not 10k of improvements justify a rent increase?

[flyingfreehold]

rent increases are determined by the rent officer and in any event since 1999 there has been legislation capping rent increases even if they are justified under the terms of the 1977 Act. However, regulated rents have moved up to around 60% or slightly better than market rents. Typically a regulated tenant will not have anything to speak of provided by the landlord other than space and water heating. No fridge no carpets and curtains etc. The profile of most sitting tenants under the Act is over 80. We have been in this sector for decades. Approx 1 in 10 "reverts" each year, so that there the pool of regulated tenants slowly shrinks. I did some research a good few years ago and there were then about 90,000 such lettings so by now we are probably down to around forty or fifty thousand.

[flyingfreehold]

Now this could be a game changer, if this is allowed in the new rules then i am sure my tenants would write me such a letter...... if it meant they are not evicted ! Because as sure as the Sun rises if i had to get my properties to a C then i would sell, and they WOULD be evicted.

of course they wouldnt be evicted. The only ground for eviction is in practice very substantial rent arrears which tends not to occur because the state provides support if there is a risk of a regulated tenant being repossessed. Many or probably most regulated tenants are living on benefits. There are regulated tenants even in Belgravia, members of the House of Lords who took monthly tenancies in the 60s and 70s. One can inspect online the electronic rent register. A good clue that the tenancy doesnt exist any longer is if the rent has not been reregistered for more than two years

[Hudson01]

of course they wouldnt be evicted.

Oh yes they would, my tenancies are NOT regulated and if the EPC C came in then i would sell the lot !!!! I am coming up to retirement and spending the kind of money i would need to makes no financial sense.

Tough times ahead for existing and future tenants i feel.

[flyingfreehold]

The likelihood is that they will water down EPCs. Bizarrely electric heating may get a bump up because it can be generated by wind and tides etc, in theory at least.