From 1st April 2018 the law regarding EPCs for properties to-let changed. Both residential and commercial properties are required to have an Energy Performance Certificate that reaches AT LEAST a minimum efficiency band E. Properties in bands F and G, the lowest 2 bandings, may not be let until enough improvements to there energy efficiency are installed so as to ensure a minimum band E, EPC.
From the 1st April 2018 the regulations apply upon the granting of;
- a lease to a new tenant, and
- an extension of a lease to an existing tenant
- All types of domestic property are included except those excluded from having an EPC.
Excluded Buildings include
- Domestic dwellings let on tenancies of less than 6 months or of 99 years or more are excluded
- Places of worship used for religious activities
- Buildings/dwellings that are of historical significance
- Temporary buildings with a planned time of use of two years or less
- Residential buildings which are intended to be used less than four months of the year
Enforcement is the responsibility of Local Authority, Weights & Measures Departments and/or Trading Standards. Any exemption Certificates issued will be lodged on an exemptions register.
Landlords will be eligible for exemptions from reaching an E rating where they can evidence;
The measures are not cost-effective – on a 7 year payback or under the Green Deal Golden Rule (pay for the improvement via savings generate over the lifetime of the improvement)
The Landlord cannot obtain necessary consents to install the improvements (from tenants, lenders or superior landlords)
A suitably qualified expert provides written advice that the measure would reduce the properties value by 5% or more, or that wall insulation will damage the properties structure.
The exemptions are valid for five years only and cannot be transferred to a new landlord.
The penalty regime for non-compliance with the regulations will be as follows:
Infringement | Penalty | |
Providing false or misleading information to the PRS Exemptions Register |
£1,000 Publication of non-compliance |
|
Failure to comply with a compliance notice from a local authority |
£2,000 Publication of non-compliance |
|
Renting out a non-compliant property |
Less than 3 months non-compliance £2,000 fixed penalty Publication of non-compliance |
3 months or more of non-compliance £4,000 fixed penalty Publication of non-compliance |