DOMESTIC RENTED PROPERTIES
ENERGY EFFICIENCY REGULATIONS

DOMESTIC TENANTS – ENERGY EFFICIENCY

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 provide for powers to ensure that from April 2018, it will be unlawful to rent out residential premises that do not reach a 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. This will come into force on 1st April 2018. The additional requirement to secure an EPC certificate for properties with existing leases will come into force from 1st April 2020. 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 2023 – 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 £4,000

 

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