Landlords, new energy efficiency standards for renting residential property
Being a landlord, we’re sure you are fully aware of the energy performance certificate or ‘EPC’, although if you are not, here’s a handy guide to EPCs. Recently, the Government introduced a new law, aptly named ‘The Energy Efficiency Regulations 2015’ which will now come into force from the 1st April 2018 and relates to the ratings of EPCs.
What does this mean?
All landlords renting private domestic and non-domestic property in England and Wales will need to ensure their rental properties reach at least an EPC rating of ‘E’ before starting a tenancy for new or existing tenants from April 2018. This means if your property has an EPC rating of ‘F’ or ‘G’ then a new tenancy could be unlawful unless exceptions have been met. Furthermore, from 1st April 2023, the regulations will also apply to all existing tenancy agreements, i.e. where a tenant has been in situ before the initial 2018 regulations came in to place.
The Government has released a guidance document on this new law which is relevant to both domestic and non-domestic private rented property.
What are the exceptions?
There are some exclusions and exceptions that allow a landlord to rent a property with a low EPC (energy performance certificate) rating, such as; a landlord may let a sub-standard property where they can demonstrate that they have been unable to improve the energy efficiency rating further. More information on the exceptions can be found in the document above. However, it should be noted that a landlord must register the exemption on a central Private Rented Sector Exemption Register and will only last for a period of 5 years.
Without a doubt, your next step should be understanding all of your rented properties EPC ratings. Whilst there is over a year until this new law comes in to place, it’s better to know exactly where you stand and budget for any necessary improvements. Why do this on your own? We are here to help. Being a letting agent and property management company with over 25 years of experience, we are in a great position to work with you to gain an understanding of your current situation and do all the hard work for you as we work closely with energy assessors and property legal specialists.
Why not give us a call on 01454 316718 today? We would be more than happy to help.