New minimum energy efficiency standards introduced – Is your property compliant?

The Energy Efficiency (private rental properties)(England & Wales) regulations 2015 come into force from April 2018.

New minimum energy efficiency standards introduced – Is your property compliant?

Since 2008 it has been law that all properties offered for rent must have an Energy Performance Certificate to assist tenants in choosing the most energy efficient homes.

From 1st April 2018 landlords with a rental property with an EPC (energy performance certificate) rating of F or G will not be able to grant a tenancy to new or existing tenants. This will also include existing tenants who renew on a periodic basis. Those landlords with tenants who are already on a periodic tenancies at this time are not affected until 2020.

From 1st April 2020 all rental properties (with very few exemptions) must achieve an EPC rating of E or above.

According to government figures the private rented sector has a disproportionate share of the UK’s least energy efficient homes, however at EMPM our landlords share our ethos of offering well maintained, good quality properties and therefore only a small proportion of our landlords are affected.

As making energy efficiency improvements to a property takes time to arrange, we will be contacting those landlords affected individually to discuss the options available to you, in order to meet the April deadline.

The government says by introducing these new regulations they hope to meet the following objectives:

Energy costs for tenants are reduced especially in older houses
Reduce greenhouse emissions
Improve the condition of properties and help reduce maintenance costs
Smooth seasonal peaks in energy demand bringing increased energy security

The government is also keen to point out that landlords should also benefit from increased tenant satisfaction, less void periods, less regular maintenance and by making properties more attractive to prospective tenants and increasing resale value.

Landlords not complying with the legislation would be subject to enforcement by the local authority who will have powers to issue compliance notices and impose financial penalties. There are circumstances where by properties that are unable to reach the required EPC ratings may be given exemption, if you think your property may be affected, please ask for further details.

EPC’s are valid for 10 years, so April 2018 is also the anniversary date of the start of EPC’s for rental properties. We will need to start renewing EPC’s as they reach their expiry date when current tenants give notice to vacate.

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