How the Energy Efficiency Regulations 2015 affect landlords

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 were recently passed.


From 1 April 2018, all rented property which is to have a new tenancy must have an Energy Efficiency Rating of at least “E”.


This requirement also applies to all renewal tenancies to the same tenant for the same property on or after 1 April 2018. The duty is also triggered by any periodic tenancy arising on or after 1 April 2018 after expiry of any fixed term because the duty is not only triggered by a renewal but also “an extension”.


From 1 April 2020, all domestic property (including existing tenancies) must have the minimum Energy Efficiency Rating of at least “E”.


There are a number of proposed exemptions for the minimum standard where:


• the property is unable to be brought up to the standard
• the tenant refuses consent
• the landlord is unable to obtain consent from a third party
• works required to bring the property up to the minimum standard would devalue the property by more than 5% of market value


Penalties


Where a domestic property has been let which does not meet the minimum standard, the tenancy remains valid between the landlord and tenant but a fine will be payable by the landlord of up to £5,000.


The most recent Energy Performance Certificate (EPC) for your property contains recommendation of ways in which the energy efficiency of your property can be improved.

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