From 1st April 2018 it will be unlawful for a landlord in the private rented sector to grant a new domestic tenancy or renew an existing one if the property does not have a minimum energy performance rating of ‘E’ on its Energy Performance Certificate (EPC).
From 1st April 2020 it will be unlawful for a private landlord to continue to let a residential property that does not have a minimum energy performance rating of ‘E’ on the EPC,
This will cover virtually all private sector residential tenancies. including assured shorthold tenancies. Similar rules will apply to private sector commercial leases.
Failure to comply could result in a substantial fine.
The above rules on energy efficiency standards will not apply in the following circumstances:
If the landlord has made all of the relevant energy efficiency improvements to the property that can be made but the property remains substandard or no relevant improvements can be made.
If the landlord has been unable to access relevant ‘no cost’ funding to fully cover the cost of installing the recommended improvements.
If wall insulation is not appropriate,
If consent is required from a third party to carry out the energy efficiency improvements and the landlord has, within the previous five years, been unable to obtain the relevant consent from the tenant or third parties to carry out the improvement works despite making reasonable efforts to do so.
If the landlord has obtained a report from an independent surveyor stating that the relevant energy efficiency improvements would result in a reduction of more than 5 per cent in the market value of the property, or of the building of which it forms part.
There are also some temporary exemptions.
This is a very brief summary of the upcoming changes for educational purposes only and does not cover the rules in detail. It should not be relied upon as if it were legal advice.
For advice please contact Jonathan Lynn at Courtyard Solicitors LLP.
