From 1st April 2020 it will be unlawful for a landlord of a domestic property to continue to rent that property out if the Energy Performance Certificate (EPC) has a rating of below ‘E’, unless an Exemption has been registered.
Initially, these rules only applied to a new tenancy however, they have now been extended to cover existing tenancies.
As landlord of a domestic property, it is your duty to ensure that your properties comply with the regulations – https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance
You will need to carry out all ‘relevant energy efficiency improvements’, and will need to be prepared to spend up to £3,500 to improve the energy efficiency of the property. If the improvements will cost more than that, you may be able to register for an Exemption.
You may qualify as an Exemption to this regulation if:
You need the Tenants’ consents to do the works and the Tenant unreasonably fails to give consent.
- There may be other consents that are required (for example your lender or planning authority), and which are not forthcoming, but this is unlikely.
- If a relevant energy efficiency improvement would result in a reduction of more than 5% in the market value of the property, the landlord may be able to register an exemption.
- All the relevant energy efficiency improvements for the property have been made (or there are none that can be made) and the property remains sub-standard.
- The building is listed and the upgrades would ‘unacceptably alter’ property’s character or appearance.
- There is temporary Exemption if you have recently bought a “substandard” property.Any exemption must be validly registered on the PRS Exemptions Register.Failure to adhere to these rules could result in a fine of up to £4,000 and the Local Authority may also publish a list of Landlords who have breached the regulations.Please do not hesitate to contact us if you need help on this.