Landlords: Upcoming Legislation Changes

From the 1st April 2018, the EPC on both domestic and non-domestic properties in the private rental sector in England and Wales will have to meet a minimum energy efficiency standard (MEES) of an E-rating.

This rule applies to a lease between six months and 99 years and it will not be possible to issue a new tenancy, or renew an existing one, if your rating is below this minimum. There will also be fines of up to £5,000 for landlords that are found in breach of the legislation.

April 2018 Changes
After April 2018, if your minimum term ends, but you still have a contract in place, the rules won’t suddenly apply to your tenancy. If you don’t renew your tenancy, you will be fine, even if your last rating was below an E. After your minimum term expires, your tenancy can run on as a periodic tenancy.

April 2020 Changes
In April 2020, the new MEES rules will apply to all existing lets. Even if your tenancy is already underway and you have no plans to renew, if you don’t have an EPC rating of E, you could face fines.

What if I have an EPC rating lower than an E?
If your last EPC is more than a few years old and the rating was below an E, the first thing to do is to get an up-to-date EPC carried out. EPC calculations are changing all the time and it is possible that you will receive a different rating to the one you got several years ago. If the property’s new EPC rating is still below an E, then you will need to make efficiency improvements to boost your rating before you let it out, or renew your contract.

Your EPC report will have a list of recommended measures for improving your property’s energy efficiency performance. You will need to carry out enough of these measures to improve your score to above an E rating.The column, ‘Rating after Improvement’, shows you what the rating would be if you carried out that improvement and all the other ones above it in the table. Once the necessary works have been carried out, you will need to get another EPC to show the new energy rating.

Squire Estates

At Squire Estates, we are checking all EPCs and will contact you if your property has a rating below an E. However, if you would like to check it yourself, please click on the link here.

If you are unsure about how to proceed with improvements, or require any further help, please contact us either by email at [email protected] or by phone on 01442 233533.

Published Date: Oct-24-2017