Energy Performance Certificates – changes to landlord requirements

Our Property Insights Team update you on the planned changes to Energy Performance Certificates due to take effect in April this year which affects the private rented sector.

 

What is an Energy Performance Certificate or EPC?

An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.

It contains:

Information about a property’s energy use and typical energy costs

Recommendations about how to reduce energy use and save money

 

Who needs an EPC?

Energy Performance Certificates (EPCs) are needed (subject to certain exceptions) whenever a property is:

Built

Sold

Rented

You must order an EPC for potential buyers or tenants to review before you market your property for sale or to rent.

 

What’s changing?

Energy Performance Certificates were launched in August 2007, but a recent announcement has advised of changes that are due to take effect from 1st April 2018.

The proposed changes state that the minimum energy efficiency standard (MEES) rating for all rented property (both domestic and non-domestic) will become a rating of E, so if an EPC shows a rating of F or G it may become unlawful to let the property. 

There will be a requirement for any properties rented out in the private rented sector to have this minimum energy performance rating of E. Regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020.

It will be unlawful to rent a property, which breaches the requirement for a minimum E rating, unless there is an applicable exemption.

A civil penalty of up to £4,000 will be imposed for breaches. There are separate regulations effective from 1st April 2018 under which a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties.

We’ve provided a link below to the Government website – but for help and advice on this matter, and any other property law related issues, please ring one of our property experts.

 

HM Government website

 

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Tags: E Rating, Energy, Energy Performance Certificate, EPC, Insight Law, Property Law Specialists, We Talk Property

Categories: Commercial, Guide, Residential

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