Tenants home in on bills

New government research shows that 79% of renters are worried about the cost of their household bills.

This is at a time when bills are a hefty slice of UK households' expense budget, with the average UK household currently paying the equivalent of 20% of the average rent £6760 on their gas and electricity bills £1360.

With the number of new tenancies mounting - by 20% in the past three months - and with fuel bills continuing to rise, landlords will want to appeal to the growing supply of tenants and respond to their concerns over fuel bills:

• after location, household bills are now the most important factor in choosing a property to rent - 22% saying that the level of household bills had an 'extreme effect' in their decision-making
• whilst noisy neighbours, permission to paint on the walls and aspect of houses feature highly in rental decisions, it is financial concerns which top the chart of questions to ask landlords - over a third 35% of renters rank council tax in their top three factors to ask landlords, and 34% rank household bills in their top three factors
• over a quarter 27% of renters regretted that they hadn't found out about the level of household bills beforehand, and wished they'd asked their landlord when looking for the property

Despite renters losing sleep over bills and the ability to save £300 a year through energy efficiency measures, 77% of renters believe that their landlords don't care about energy efficiency. Landlords may not be banking on the potential to reduce household bills, and attracting tenants wanting more cash in their pockets. What's more, help is at hand for landlords, offsetting the cost of installing energy savings measures against income tax.

This comes at a time when Energy Performance Certificates are being introduced to the rental market. From 1st October 2008, an EPC will be required for all new tenancies signed on or after this date. Valid for 10 years, the EPC will provide landlords and tenants with information on the energy efficiency and carbon emissions of their property in an easy-to-understand fridge-style rating of A-G. As part of the evaluation, the assessor will also provide a list of recommendations suggesting cost effective improvements to raise the property's energy efficiency.

Since being introduced in 2007 for homebuyers, more than one million Energy Performance Certificates EPCs have been produced and registered in England and Wales - with the average rating being 'D'.

Communities Minister Iain Wright said: "Energy Performance Certificates offer tenants and landlords a real opportunity. The certificate provides clear information on a building's energy efficiency and recommends cost effective improvements. The EPC should be welcomed by tenants who are looking for better value and more energy efficient rental properties, as well as landlords who are, more than ever, keen to attract responsible and committed tenants."

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2008-10-02 09:34:19 © Moneyextra.com