Love them or hate them, the long awaited Minimum Energy Efficiency Standards have arrived. Subject to the exemptions, in a nutshell, this means that as of 1st April 2018, Landlords of both domestic and non-domestic private property must not grant a tenancy to new or existing tenants with an EPC rating of F or G.
Does this apply to my property?
Domestic private rented property is any privately rented property that is a residential dwelling not used for commercial purposes.
Non-domestic private rented property is any privately rented property that is not a dwelling, meaning a building or part of a building occupied or intended to be occupied as a separate dwelling.
The Regulations will also apply to rented properties within mixed use buildings. Where a property is ‘sub-standard’ (i.e. below the band E rating), the landlord will need to examine the tenancy to determine whether the property is domestic for the purpose of the Regulations.
Are there any exemptions?
There are a number of exemptions all of which are subject to strict requirements. In brief, the main exemptions include:
The seven year pay-back test:
An exemption may be available where the measures are not shown to be cost-effective.
A temporary exemption of five years may apply where the energy efficiency improvements require consent of a third party and reasonable effort has been made to seek consent without success.
A temporary exemption of five years may apply where a RICS surveyor has advised that the installation would reduce the value of the property by more than 5%
A temporary exemption of six months may apply where a person has become a landlord suddenly and it would be inappropriate or unreasonable for them to be required to comply immediately.
All relevant improvements have been made:
An exemption may apply where a landlord carries out all relevant energy efficiency improvements but the property remains below an energy efficiency rating of E.
For domestic properties only:
An exemption may apply where the landlord has proposed to fund the improvements through a Green Deal plan but the tenant has refused to give the consent required.
If you believe an exemption may apply, you must register the exemption on the PRS Exemptions Register in advance of breaching the regulations. Further details may be found using the link at the bottom of this page.
Where a property has been let in breach of the Regulations (or false information has been lodged on the exemptions register) the local authority may impose a financial penalty of up to £5,000 per property and per breach upon the landlord. This means the same landlord may be charged again if he continues to breach the regulations.
The authority may also publish details of the breach on the national PRS Exemptions Register.
Now, I’m panicking and I can’t find a copy of my EPC, where can I get one?
I have a long tenancy so I don’t need to worry for a while, right?
Not exactly! From 1st April 2023, Landlords must not continue letting a domestic or non-domestic private rented property which is already let if that property has an EPC rating of band F or G.
This means you should be organised and ensure your improvements are carried out or your exemptions are applied for before this date.
Recommendations have been made to the government to ban all combustible materials in high-rise residential buildings following the Grenfell Tower disaster. Read more on our website: http://ow.ly/DEYu30lwpnQ