From 1st April 2018 landlords of domestic properties have not been legally able to grant a new tenancy or renew an existing tenancy for a property with an EPC rating of F or G, unless they undertake works to improve the EPC rating to E or above, or otherwise register a valid exemption on the Private Rented Sector Exemptions Register.
From 1st April 2020 all existing private rented properties must have a minimum EPC rating of E, or be registered as exempt - otherwise they will be in breach of the above-mentioned Regulations. Landlords who are in breach need to take action immediately to ensure that they achieve compliance.
An exemption may be granted if:
• The building is listed, and the works required to bring the building up to standard would unacceptably alter the buildings character and appearance
• The improvement works cost more than £3,500 (you are still required to carry out improvement works up to the £3,500 limit)
Please be aware that landlords who choose not to comply with the requirements and have not registered their property on the exemptions register, may be subject to enforcement action from the council which could result in financial penalties of up to £5,000. The Council is actively scrutinising the EPC register to identify such properties.
Your EPC will contain a list of recommendations detailing measures which should improve the energy rating of your property. You should refer to this when deciding what measures to install.Financial assistance may be available to assist with installing energy efficiency measures, particularly if your tenant is vulnerable or is on a low income. To enquire about eligibility, you can contact our agents, Act on Energy on 0800 988 2881 or visit their website www.actonenergy.org.uk
You will not be required to spend more than £3,500 per property, whether this is entirely self-funded or a combination of self-funding and financial assistance. With combined funding, you are only required to top-up the costs to a maximum of £3500. In some cases, grant funding will cover the full cost of any works, and so you will not need to contribute.
Government advice for landlords is available here: https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance
If you would like our assistance, you can contact us: