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MINIMUM ENERGY EFFICIENCY STANDARDS

IMPORTANT NOTE 

The ending of State aid for the Green Deal means that changes need to be made to the Regulations imposing minimum energy efficiency standards in the PRS. The Government has now indicated what these changes could be and they are noted in the appropriate sections below. We would, however, stress that no final decision has been made and the Regulations themselves have not yet been amended. 

Research has also identified that energy performance certificates (EPCs) understate the thermal efficiency of solid walls. Many PRS properties have solid walls. Usually they were built pre-1918 but can be later. Again, the Government are proposing to recalibrate EPCs to give a truer reading. This could mean that some solid wall properties currently rated F under an EPC will no longer require any work and less work may be required in the case of a G rated property. The Government has yet to bring forward the relevant regulations to implement these changes. Landlords of F and G rated solid wall properties are therefore strongly advised to await developments. Should changes be made then a new EPC will be required. Existing EPCs cannot be adjusted. Once EPCs are recalibrated, in these cases, obtaining a new EPC may mean that you no longer need to comply with the Regulations or less work may be required. 

Overview 

As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector to normally have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches. This guidance summarizes the regulations. There are separate regulations effective from 1st April 2016 under which a tenant can apply for consent to carry out energy efficiency improvements in privately rented properties. 

For most landlords this will mean that they will no longer be able to rent out a property with a rating of F or G after April 1st 2018. As such landlords with properties in this EPC bracket should begin preparing now for April 1st. However, there are several nuances and exceptions.

When energy efficiency improvements are compulsory 

Where at any time on or after 1st April 2018 a landlord lets a privately rented property which is F or G rated on a current legally required EPC then energy efficiency improvements must be carried out to bring the property up to at least an E rating before the property is rented out, unless the landlord qualifies for an exemption and the exemption is registered on the Public Exemptions Register. 

There several ways in which you will be classed as letting a property for these purposes: 

  • You grant a new assured tenancy, including a shorthold 
  • You renew or extend an existing assured tenancy, including a shorthold, by agreement with the tenant. This can be done when you grant a fresh tenancy to the same tenant or simply agree with the tenant that the existing tenancy will be extended 
  • A statutory periodic tenancy comes into existence following the ending of a fixed term assured tenancy (shorthold or non-shorthold). At that point the law imposes a new tenancy on the parties where the tenant stays after the fixed term has run out. This is treated as a new letting for these purposes 
  • A new assured tenancy by succession comes into existence when a family member takes over a Rent Act protected tenancy 
  • A new tenancy is granted to a Rent Act protected tenant of the same or a different property owned by the same landlord 
  • An agricultural occupancy or similar tenancy is granted, renewed or extended 

For full information regarding the scope, property types, tenancy types, exclusions, exemptions, potential improvements required and penalties, please contact This email address is being protected from spambots. You need JavaScript enabled to view it. to receive a free copy of our full guide.

If you are unsure of your properties current rating you can look it up on the central register at: https://www.epcregister.com

For more guidance visit: https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents

Update to Regulations: April 2018 vs April 2023

Changes to the Energy Act 2011 provide for powers to ensure that from April 2018, it will be unlawful to rent out business premises that do not reach a minimum energy efficiency standard. Energy Performance Certificates (EPC) rate how energy efficient your building is; using grades ‘A’ to ‘G’ (with ‘A’ being the most efficient). The regulations will require landlords of non-domestic buildings to have secured an EPC certificate with an E rating or higher in order to issue a new lease for a property. This will come into force on 1st April 2018. The additional requirement to secure an EPC certificate for properties with existing leases will come into force from 1st April 2023. 

 

The Scope:

These regulations apply to all non-domestic private rented sector properties England and Wales. A minimum standard of E Rating on EPC is  required with any new lease to a new or existing tenant.

From 1st April 2023 all privately rented properties within the scope of the regulations must have a minimum EPC Rating of E.

 

Restrictions on Improvements

Properties may be eligible for exemptions if:

  • Improvements are not cost effective a 7 year payback
  • Unable to gain consent for works from tenant, lender or superior landlord
  • Expert states that measure will reduce the property value by 5% or more
  • Wall insulation will damage the property

Enforcement and Penalties

The regulations will be enforced by local authorities and any exceptions must be recorded in their register. Penalties for non-compliance can include a penalty of £150,000 for renting out a non-compliant property for more than 3 months, so it is vital you take immediate steps to improve your properties rating now if it falls below an E.

If you are unsure of your properties current rating you can look it up on the central register at: https://www.epcregister.com

For more guidance visit: https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents

Following the success of our first ever event in 2018, Anthony James decided to make the Big Summer Bash an annual event to raise vital funds and awareness for our charity partner, Community Link Foundation.

CLF is a local charity that helps people in our community. Find out more at: https://www.facebook.com/CommunityLinkFoundation/

This years Live Entertainment featured Matt Fearon, DJ Alistair Cunningham, DJ Paul Ennis and Headline act Decoy. In addition to live music there was childrens entertainment, a buffet, fundraising raffle and prosecco reception.

The event was a sell-out success, and most important a grand total of £1771.71 was raised for Community Link Foundation, vital funds that will go directly to those in need in our community.

A big thank you to everyone that attended, donated, provided raffle prizes and took part, we can't wait for next year!