Energy Performance Standards For Domestic Landlords
U-Value offer a wide variety of energy efficiency optimisation solutions within Kettering, Loughborough, Lutterworth and the surrounding counties. Ensuring your property or property portfolio receives the necessary energy performance certificate to comply with he latest government regulations on Minimum energy performance standards for rentable properties.
There are two elements to the domestic legislation on energy efficiency. In both cases the legislation applies to privately rented dwelling houses. This includes those let under the Housing Act (1988), the Rent Act (1977) and the Rent (Agriculture) Act (1976).
The two elements to the legislation are
1) The tenants’ right to request energy efficiency improvements:
Under the new rules, tenants have a right to request improvements in energy efficiency on properties they are renting.
This is regardless of whether there is an Energy Performance Certificate in place. However, the landlord has no obligation to fund the works. These rules have been in place since 1st April 2016.
In our experience, given that these works will be completed at no cost to the landlord it makes sense to be supportive. If any tenant wants to improve the energy efficiency of the property it may well save you carrying out similar works at a later date.
There is a set process that needs to be followed by landlords. Tenants can apply to The First-tier Tribunal General Regulatory Chamber if landlords do not fulfil their obligations.
2) Minimum Energy Performance Standards.
From the 1st April 2018 it will be illegal to grant a new lease on any dwelling house not meeting the new standards. The minimum energy performance rating will be E.
Any properties with Energy Performance Certificate (EPC) ratings of F or G will be illegal to re-let.
The definition of a “new lease” includes:
* A new letting to a new tenant
* A new fixed term lease to a current tenant
* A fixed term tenancy to a current tenant becoming a statutory periodic tenancy
From 1st April 2020 the legislation will apply to any let domestic property.
This could provide significant problems to landlords with tenants on older leases. Especially where rent control limits funds available to carry out improvement works.
Penalties for ignoring the law are costly. Renting out non-compliant property or providing false information to the register are infringements. Fines start at £2,000 and rise to £4,000 per offence and can be cumulative if there is more than one violation.
There are certain circumstances where carrying out work is not required and exemptions may be available. Exceptions apply for certain cases such as property already excluded from existing Energy Performance Certificate (EPC) legislation, including listed buildings. Works will not be required if they do not meet the ‘Golden Rule’ (that savings on energy bills will pay for the works). In our experience, the number of properties where exemptions apply are limited. In most cases there will be cost effective measures to improve energy efficiency.
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