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From the 1st April 2018, landlords of privately rented domestic and non domestic properties in England and Wales must not renew existing tenancies or grant new ones if the building has less than the minimum Energy Performance Certificate (EPC) rating of E. This will be extended to all existing tenancies by 2020. Certain Exemptions do apply.
One in four landlords does not know their property energy rating. This is despite needing an EPC by law according to a recent survey by the energy company E.ON.
EPCs tell you how energy efficient a building is and give a rating from A (very efficient) to G (inefficient). EPCs are valid for 10 years from when issued. In England and Wales, only accredited Domestic Energy Assessors can produce valid EPCs. The EPC will state what the energy-efficiency rating could be if improvements are made. It also highlights cost-effective ways to achieve a better rating.
Landlords will need to carry out works to improve energy performance of the building at their own cost to ensure the EPC is at least an E rating after 1st April 2018. Penalties for non compliance will be imposed and fines can be up to £5,000 for non observance per property per breach.
If you are buying a property to rent out and the EPC shows an energy rating of F or G, you should take specific advice from your surveyor to ascertain what works will be required to achieve the necessary improved rating and the likely cost of these works.
Currently, 330,000 rented homes have an EPC rating of F & G so the clock is ticking for landlords to act now.
For more information on the new regulations, please visit the following website:-
If you are buying a property and require legal advice, give our conveyancing team a call on 01270 625478.
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