DOMESTIC RENTED PROPERTIES ENERGY EFFICIENCY REGULATIONS
Regulations outlining energy efficiency measures for domestic tenants came into force on 1st April 2016 and introduced the right for tenants to request energy efficiency improvements that a landlord cannot unreasonably refuse.
In addition, changes to the Energy Act 2011 mean that from 1st April 2018, it became unlawful to issue a lease for residential premises that do not reach the minimum energy efficiency standard. Energy Performance Certificates (EPC) rate how energy efficient your building is; using grades ‘A’ to ‘G’ (with ‘A’ being the most efficient). The regulations require landlords of Domestic buildings to have secured an EPC certificate with an E rating or higher in order to issue a new lease for a property. The additional requirement to secure an EPC certificate for properties with existing leases came into force from 1st April 2020 meaning that all landlords must be in possession of an EPC with a rating of E or above to continue letting the property to its existing tenants unless one of the statutory exemptions applies.
A summary of the key points can be seen below:
| EPC Regulations – Domestic | |
|---|---|
| Key points | |
| Scope | Domestic private rented sector in England and Wales |
| Minimum Standard | E Rating on EPC |
| Application | 1st April 2018 – granting of new lease to new or existing tenant |
| 1st April 2020 – All privately rented properties in the scope of the regulations | |
| Restrictions on Improvements | Have implemented cost effective savings but EPC remains below an E – in line with Green Deal Golden Rule |
| Improvements require Green Deal funding and they or their tenant fails the credit check | |
| Cannot secure contractually or legally required third party consent | |
| Tenant withholds consent | |
| Expert states that measures will reduce property value by 5% or more | |
| Wall insulation will damage the property | |
| Enforcement | Local authority |
| Exemptions | Exemptions to be recorded on register |
| PENALTIES | |
| Non Compliance | Financial penalty not exceeding £2,000 and publication of non-compliance |
| Providing misleading information | Financial penalty not exceeding £1,000 and publication of non-compliance |
| Renting out a non-compliant property for less than 3 months | Financial penalty not exceeding £2,000 |
| Renting out a non-compliant property for more than 3 months | Financial penalty not exceeding £4,000 |
| Maximum Fines | Total fines cannot exceed £5,000 |
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