Minimum level of energy efficiency – a guide for landlords

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 set minimum levels of energy efficiency for private rented property.


From 1 April 2018, all rented property (both domestic and non-domestic) 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 an energy efficiency rating of at least “E”. Non-domestic properties have until 1 April 2023 (including existing tenancies) to ensure they meet the “E” rating.


There are several 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 “E” level 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. Fines can be much greater for non-domestic properties depending on their size.


Minimum rating may rise in the future


Suggestions have been made to increase the minimum rating to “D” in 2025 and to “C” in 2030. From all the Energy Performance Certificates (EPCs) collated in 2014 over half of all properties recorded currently have an energy efficiency rating of “D” or below.


What landlords should do now


Check the EPC for your rented property to see what the current energy efficiency rating is. If the current rating is an “F” or “G” you should act as soon as possible to improve the energy efficiency of your property to at least an “E” rating – the skills for improving the energy efficiency of properties are in short supply and as we approach the deadline, they are likely to get even harder to find. Suggestions on how to improve the energy efficiency of your property can be found in the EPC in the section called ‘Top actions you can take to save money and make your home more energy efficient.’


If you do not have a copy of the EPC available, download a copy from the EPC Register using Retrieve Report Using Property Address option. If an EPC for your property does not exist, commission a Domestic Energy Assessor to provide one. Domestic Energy Assessors can be at the EPC Register website here using Find Energy Assessor option.

This entry was posted in Landlords. Bookmark the permalink.

Comments are closed.