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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