News
The future of energy performance ratings
Thursday 22nd June 2017
When renting a property it is a legal requirement to have an EPC (Energy Performance Certificate) but from April 2018, the government are introducing new regulations that all properties in England and Wales that are rented in the private sector, must have a minimum energy performance rating of E and be validated by an EPC that is no more than 10 years old.
The regulations will apply to new lets and tenancy renewals from this date. Properties with existing tenancies will be given until April 2020. The properties affected include a privately rented domestic property that has an EPC, or a property space within a larger unit which is required to hold a valid EPC.
However there are some exclusions including residential properties that are vacant for eight or more months of the year; temporary buildings that will stand for two years or less; buildings considered architecturally significant whose appearance would be significantly altered by energy efficiency upgrades; and free-standing buildings with a total floor area of less than 50 square metres.
Should a property fail to meet the new regulations and hold an F or G rating, tenants will not be allowed to rent. If a tenant enters a property that still holds one of these ratings, the landlord could be forced to pay hefty fines. There are however some exemptions:
- Buildings that have undertaken cost-effective improvements but still fall below an E rating.
- Landlords that require and have been subsequently denied permission from third party owners to make energy efficiency improvements.
- Occupying tenants withhold consent for energy efficiency improvements.
- Landlords have written evidence from a qualified installer suggesting that improvements will be detrimental to the structure of the property.
Any exemptions need to be logged with the Government-run PRS Register. Exemption applications can be submitted from October 2017 and, if approved, will last for five years from the date of confirmation.
Penalties for false exemption submission or failure to comply with the new regulations are as follows:
- £1,000 penalty for providing false information to the PRS Exemptions register.
- £2,000 penalty for failure to comply with notices from local authorities.
- £3,000 penalty for less than three months of renting a property that does not comply with new energy efficiency regulations.
- £4,000 penalty for more than three months of renting a property that does not comply with new energy efficiency regulations.
Before these new regulations are enforced, as a landlord it would be wise to check your properties to make sure they are performing at their best. As the deadline becomes closer, it is likely that contractors will start increasing their costs in order to meet growing demand for their services.
Check your loft and cavity wall insulation meets required standards. This can have a large impact on your EPC rating and can be improved with funding, if the insulation is below a certain depth measurement.
Check your boiler and central heating system. A poor performing system could have a significant impact on your EPC rating.
Swap your lightbulbs - changing your halogen light bulbs with energy-saving bulbs could help improve your rating.
Upgrade your glazing. If you currently have single glazed windows and doors, it might be worth investing in double or triple glazed which will add to your improved rating.
Consider renewable technologies - investigate the possibility of solar panels. Whilst there is a considerable upfront cost, it should be considered a long-term investment which will almost guarantee your property will meet the new regulations.