Changes to EPCs for landlords and tenants
From April 2018, landlords will be required to achieve a minimum rating of E on the EPC for their rental property. Unless there is an accepted exemption, landlords face a penalty of up to £4,000 for failure to meet the minimum efficiency requirement.
The information provided on EPCs is also helpful for tenants looking to improve the energy efficiency of their home. As of April 2016, tenants can now seek permission from their landlord to undertake energy efficiency measures on their privately rented property.
From April 2018, a new legal standard for minimum energy efficiency will apply to rented commercial buildings. The new legal standard brings threats and opportunities for landlords, freehold investors, developers and lenders.
What is the minimum energy efficiency standard (MEES)?
The minimum energy efficiency standard (MEES) was introduced in March 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. The MEES Regulations originate from the Energy Act 2011 which contained the previous coalition government's package of energy efficiency policies including the Green Deal.
From 1 April 2018, landlords of buildings within the scope of the MEES Regulations must not renew existing tenancies or grant new tenancies if the building has less than the minimum energy performance certificate (EPC) rating of E unless the landlord registers an exemption.
After 1 April 2023, landlords must not continue to let any buildings which have an EPC rating of less than E.
Summary
Did you know that there are new laws coming into effect over the next few years that will affect private landlords?
Do you know that domestic tenants have the right to request energy efficiency improvements to their properties?
From 1st April 2018, private rental properties must achieve an energy efficiency rating of at least 'E' on their Energy Performance Certificate (EPC), A rating of 'F' and 'G' is not sufficient for compliance
EPC may need reassessing due to improved building regulations, which may have decreased previous ratings
If your property does not meet the minimum standard, you cannot let or market that property within the law, and rent reviews could also be affected.
If a tenant considers that the landlord has not complied with the Energy Efficiency Improvement regulations it could result in a penalty as much as £5000.