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Minimum Energy Efficiency Standards

IMPORTANT NOTE

The ending of state aid for the Green Deal means that changes need to be made to the Regulations imposing minimum energy efficiency standards in the PRS. From April 1st 2019 landlords will now have to pay towards the required energy efficiency improvements to bring it up to standard if there is no third party funding available.

Research has also identified that energy performance certificates (EPCs) understate the thermal efficiency of solid walls. Many PRS properties have solid walls. Usually they were built pre-1918 but can be later. The Government have now recalibrated EPCs to give a truer reading. This could mean that some solid wall properties currently rated F under an EPC will no longer require any work and less work may be required in the case of a G rated property. Landlords of F and G rated solid wall properties are therefore advised to consider having a new EPC check performed. In these cases, obtaining a new EPC may mean that you no longer need to comply with the Regulations or less work may be required.

Overview

As from the 1st April 2018 there is 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 (EPC). The regulations will come into force for new lets and renewals 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. This guidance summarizes the regulations. There are separate regulations effective from 1st April 2016 under which a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties.

For most landlords this will mean that they will no longer be able to rent out a property with a rating of F or G after April 1st 2018. As such landlords with properties in this EPC bracket should begin preparing now for April 1st. However, there are several nuances and exceptions, which this guide covers in detail.

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