Is your rental energy efficient?

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Energy Performance Certificates (EPCs) are needed whenever a property is built, sold or rented. As a landlord you must order an EPC for potential tenants before you market your property to rent. You can be fined if you don’t get an EPC when you need one.

An EPC contains information about a property’s energy use and typical energy cost, together with recommendations about how to reduce energy use and save money. An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years, irrespective of how many tenancies run during that time.

The Government has recently passed legislation called the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. This is aimed at making it easier for tenants to rent more energy efficient properties.

The impact of this new legislation is:

1 October 2016 - all private rented properties must have a minimum EPC of Band E. If the property does not meet this minimum requirement then landlords cannot start a new tenancy without making energy improvements.

1 October 2018 - the regulations requiring properties to have a minimum EPC of Band E will apply to all existing tenancies. 

If your rental property has an EPC F or G rating then now is the time to start upgrading your property in readiness for these deadlines. You will save money in energy bills in the long term, thereby making your property more attractive to lease.  There are many Green Deal options available to Landlords which shouldn’t cost you a fortune up front. 

This legislation is good news for tenants as their energy bills will be lower than those for poorly performing buildings. They will also have the power from 1April 2016 to request the landlord’s consent to energy efficiency improvements which require no up-front or net cost to the landlord.  It even places a duty on the landlord not to unreasonably withhold consent.

Local Authorities will enforce the regulations, the penalties for a breach of compliance are civil, not criminal.  There could be a financial penalty, a publication penalty, or both.  Penalties will range from £1,000 for giving false or misleading information.

If you need any advice on any aspect of this blog, please do contact our experienced lettings team on 01903 744166 or lettings@guyleonard.co.uk

Angie Blunden
Lettings Manager  

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