LANDLORDS: NEW DUTIES TO IMPROVE THE ENERGY EFFICIENCY OF YOUR PROPERTY
If you are the current Landlord of a Commercial or Residential Property or even if there is only a possibility that you may consider renting out your property in the future, you must be aware of a recent change in the law imposing a new obligation on property owners to improve the energy efficiency of their properties.
The Energy Efficiency Regulations 2015 will, from April 2016 introduce new minimum energy efficiency standards in the residential and commercial private rented sector; these regulations will become phased in over a five-year period and are expected to affect over 680,000 properties.
KEY FACTS AND DATES
- Energy performance and efficiency is measured by an EPC (Energy Performance Certificate); you cannot sell or rent out a Commercial or Residential Property without an EPC.
- From April 2016 – domestic tenants have the right to request consent from their Landlord to carry out energy efficiency improvements to their rented property at the tenant’s own cost. Landlords will be unable to refuse consent to a tenant’s request to make energy efficiency improvements.
- From 1 April 2018 – it will be unlawful for a Landlord to grant a new lease of a residential or commercial property with an EPC rating below an ‘E’ rating. This means that if a property currently has an ‘F’ or ‘G’ rating the Landlord will need to undertake recommended work to improve the energy efficiency of the property and increase the rating to at least an ‘E’ grade.
- By 1 April 2020 – Landlords will need to undertake work to improve the efficiency to an ‘E’ rating for all let residential properties, whether the tenancy is new or existing.
- By 1 April 2023 – this will be extended to all commercial leases whether new or existing.
- Act now – Landlords have a two-year period to improve any property with an F or G EPC rating particularly if you think a lease is coming to an end and you wish to re-let the property.
- If you are unsure of your energy performance rating, you will need to instruct a professional to carry out an assessment for you. You can find assessors near you at the EPC Register.
- The EPC will contain recommendations for your property, think about the cost and ways you can implement the recommendations.
Failure to improve your property
- If you are purchasing a property now which you plan to rent out in the future, carefully consider its EPC rating and if necessary ask the vendor to implement the changes before you complete the purchase, or at least negotiate an allowance to cover the cost.
- Do not ignore the recommendations, you could face heavy penalties if you fail to improve your property as well as finding you are unable to let your commercial or residential property.
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