DOMESTIC ENERGY EFFICIENCY REGULATIONS: C GRADE BY 2030

New legislation is coming which will seek a long-term trajectory to improve the energy performance standards of privately rented homes in England and Wales, with the aim for as many of them as possible to be upgraded to EPC Band C by 2030, where practical, cost-effective and affordable.

From 1st April 2020, it became unlawful continue to lease residential premises that do not reach the minimum energy efficiency standard of an E rating unless one of the statutory exemptions applies. Energy Performance Certificates (EPC) rate how energy efficient your building is; using grades ‘A’ to ‘G’ (with ‘A’ being the most efficient). Regulations for domestic tenants also came into force on 1st April 2016 which introduced the right for tenants to request energy efficiency improvements that a landlord cannot unreasonably refuse.

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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