From April 2018, there will be new minimum energy efficiency standards regulations for landlords of privately rented domestic and non-domestic properties to comply with.
The new legislation states that from April next year, landlords of the property types mentioned above must ensure that their properties have an Energy Performance Certificate (EPC) of at least E before granting new tenancies.
If you wish to rent out a property with an EPC rating of F or G, it’s time to start thinking about how to prepare for the upcoming changes to minimum energy performance standards. Read on to learn how to make sure your properties are compliant by April 2018, as well as where to get assistance with residential property law.
If your privately rented property is non-domestic…
If you privately rent out a non-domestic property in England or Wales, there are several new rules that you will have to comply with.
Landlords Energy Efficiency Requirements
From the 1st April 2018, it will be a legal requirement for non-domestic properties to have an EPC rating of at least E. Those with a rating of F or G will be classed as ‘sub-standard’ and will need to work to achieve an E EPC rating by the time the new legislation comes into action.
Non-Domestic Letting Standards
From the 1st April 2018, landlords of non-domestic properties must not let a substandard property to new tenants or existing tenants. This means that you also cannot renew a tenancy agreement after this date if your property has an EPC rating of F or G.
Then, from 1st April 2023 landlords must not continue to let a substandard property to new existing tenants, regardless of whether the contract is due for renewal or not.
Exceptions
A non-domestic privately rented property is not required to meet the minimum energy performance standards 2018 if:
- The tenancy agreement is granted on a term of 6 months or less
- The tenancy agreement is granted on a term of 99 years or more
If your privately rented property is domestic…
The new landlords energy efficiency requirements only apply to properties let under certain tenancy agreements, these are:
- Assured tenancy (defined in the Housing Act 1988)
- Regulated tenancy (defined in the Rent Act 1977)
- Domestic agricultural tenancy (defined in Energy Efficiency Order 2015)
Landlords Energy Efficiency Requirements
As with non-domestic properties, from the 1st April 2018, it will be a legal requirement for non-domestic properties to have an EPC rating of at least E. Those with a rating of F or G will be classed as ‘sub-standard’ and will need to work to achieve an E EPC rating by the time the new legislation comes into action.
Domestic Letting Standards
From the 1st April 2018, landlords of domestic properties must not let a substandard property to new tenants or existing tenants. This means that you also cannot renew a tenancy agreement after this date if your property has an EPC rating of F or G.
Then, from 1st April 2020 landlords must not continue to let a substandard property to new or existing tenants, regardless of whether the contract is due for renewal or not.
Cost of relevant improvements
It’s important to consider how much the relevant improvements will cost if your properties have an EPC rating of F or G. Although the costs may seem significant at first, the energy efficiency improvements can help you to save more money from reduced bills in the long-run.
You can also use the GOV Energy Grants Calculator to see if you are eligible for any grants or supplements to help you improve your energy efficiency.
Get help from the professionals
If you’re a landlord and you need assistance with minimum energy efficiency standards regulations, then look no further. Our team of experienced residential property solicitors can walk you through the legislation, to make sure your property is ready for the changes in April 2018.
Visit our Warrington or Manchester offices for a helping hand or get in touch via our website.