Note to landlords – what do you need to know about Energy Performance Certificate regulation?
23/04/19
If you are a landlord, you should be aware of regulations relating to Energy Performance Certificates (EPC’s) in rented property. As from the 1st April last year, both commercial and residential EPCs on new lets or lettings renewals have been required to meet a minimum rating of E. However, if there was already a tenant in the property with a continuing tenancy up to the 1st April 2023, the existing EPC can remain until this date. After this date, landlords with an EPC rating of lower than E are required to improve their EPC rating regardless of continuing a tenancy already in place.
Additionally, if a valid EPC is less than ten years old when a property is purchased, a new one is not necessary unless the property is let or sold. Landlords who have started a new tenancy or extended their current tenancy since the 1st April 2018 must ensure that they met all the requirements set out on the regulations. Any exemptions for band F and G properties must be registered on the PRS Exemptions Register.
Exemptions may be applied if:
- The landlord has carried out all the relevant energy efficiency improvements (review again after 5 years).
- The tenant or any third party denies the landlord consent to carry out energy efficiency improvements (may apply for a 5-year exemption).
- An independent surveyor has informed the landlord that energy efficiency improvements would result in a reduction of more than 5% in market value.
- A person has recently become the owner of a property which is already subject to a lease (may apply for a temporary exemption for 6 months).
- The SAP assessment methodology is also currently under review following the consultation on SAP 2016. It is probable that there will be significant changes to the treatment of chimneys, carbon factors and the u-value of solid brick walls.