Minimum Energy Efficiency Standards, Could Prove Costly

Following on from last week’s bog, we have been discussing the major costly impact on landlords when all properties that are advertised for Let, must have an EPC (Energy Performance Certificate) rating of at least an ‘E’ rating.

As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector to normally have a minimum energy performance rating of E on an Energy Performance Certificate. The regulations will come into force for new lets and relets of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches.

Older Georgian and Victorian properties typically have an F rating or below if the property has not been upgraded with modern windows or a more efficient boiler system for example. Other often suggested ways to improve EPC ratings, is to have cavity wall and loft insulation to reduce heat loss, thus save energy. These improvements can be costly and many landlords and may not be able to afford such an outlay.

We suspect, with more media coverage that many landlords will potentially make the decision to sell their properties towards the end of the year, in order to avoid the conditional circumstances and the April deadline.