ENERGY SAVING BLOG

The economic downturn has turned all of us into savvy consumers. Nobody pays anymore without trying to get the best value possible out of any purchase and especially when it comes to buying or renting a property. With interest rates at an all time low, rents have dropped to their lowest level in years. Yet as we can see the price of petrol and diesel is back up yet again and it won’t be long before electricity and gas prices follow suit. Therefore a smart tenant will look for a more energy efficient property which will cost less to heat and run . In theory…..

When it comes to practice, only research in the current rental market can show what happens in reality. Our company contacted a few major letting agencies to find out how the energy rating of rental properties affects rental values.

In apartment blocks prices for similar properties varied depending upon the floor with ground floor being cheaper for the reasons of security, noise levels and less light/view than the higher floors. It’s justified from the energy efficiency point of view too: the ground floor has more exposed elements and will require more light than an apartment on a higher level. Yet a top floor has just as many exposed elements but the price for a top floor apartment would commonly be higher because of the view, increased privacy & lesser levels of noise. In this case a BER will not affect the rental value as much as in a ground floor apartment.

Minister Ryan recently announced that it would be the Government’s intention not to pay rent allowance on properties which don’t achieve a certain degree of energy efficiency.

With this in mind we have a few tips for tenants when looking for their next property:

1. Always look for a BER Certificate before you sign the lease contract. If the rating is poor it might affect your ability to claim the social allowance.

2.  When you have a choice, preference should be given to the middle units (less exposed elements – less heat loss). Next best choice – top floor and the last – ground floor apartments.

3.  Not all apartments in the same block are identical (this is especially true with older blocks of apartments): chose the ones where owners upgraded to double glazing instead of single glazed units.

4.  Chose properties with a newer boiler and heating controls over older types with lesser efficiency.

5.  If the heating is provided by electric heaters – go for the property with newer – slimline heaters rather than the old storage heaters.

We were advised that people give BERs a good consideration when they look to rent in an area where the housing stock is older as the lower Energy Rating is used to lower the rental price of the property. However this can be a disadvantage to the tenants as they may lose out in cases where they claim the rent allowance and the property might not qualify.

For more information about energy rating and its effect on price of the properties please contact our office on 01 6688 304. Our BER experts will be able to carry out an energy audit on your property and give you competent advice on value for money upgrade of the energy rating.