Why it may be illegal to rent out your property from April 2018:
Landlords, when preparing your rental property for your new tenant the focus might be on installing a new kitchen, cleaning the carpets or refreshing the bathroom suite. But from 2018 that focus will shift to how energy efficient your property is, if the efficiency rating is to low then you will be banned from granting a tenancy.
The new regulations were first introduced in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, known as the Minimum Energy Efficiency Standards, with the aim to improve the energy efficiency of private rented properties across the UK.
Under the Minimum Energy Efficiency Standards, buildings in England or Wales must achieve at least an ‘E’ rating on their Energy Performance Certificate in order for them to be leased or rented.
What is an Energy Performance Certificate?
Energy performance certificates (EPCs) tell you how energy efficient a building is and give it a rating from A (very efficient) to G (inefficient). EPCs let the person who will use the building know how costly it will be to heat and light, and what its carbon dioxide emissions are likely to be. The EPC will also state what the energy-efficiency rating could be if improvements are made, and highlights cost-effective ways to achieve a better rating. (Source: Energy Saving Trust)
When do the changes start?
From 1st April 2018 Landlords will be unable to grant a tenancy, either a new tenancy or renewal, for a property with an EPC rating below E.
From 1st April 2020 the minimum rating of E will apply to all existing tenancies.
It will be unlawful to rent a property which breaches the requirement for a minimum E rating and penalties can be imposed, unless there is an applicable exemption i.e. where consent for the upgrade works cannot be obtained, or where the works needed would devalue the property by 5%.
Landlords act now!
Properties with an EPC rating below E are rare, but you should check your EPC now to see your current rating and plan the required improvement works.
Want to see more content like this?