Energy Performance Certificate (EPC) Requirements for Rented Properties
As of 1st April 2018, private rented residential and non-domestic property must comply with the Minimum Energy Efficient Standard (MEES). The advice in this article relates solely to private rented residential properties.
All rented properties (other than those with an exemption such as listed buildings and certain other specific properties as stated in the Energy Performance of Buildings (England and Wales) Regulations 2012 as amended) are required to have an Energy Performance Certificate in place for the property to be rented out or indeed sold. The Energy Performance Certificate lasts for 10 years and provides recommendations on improving the energy efficiency of the property.
Minimum EPC Ratings
The new requirements provide that a property cannot be let out or continued to be let out where the property has an Energy Performance Certificate rating of F or G. The Minimum Energy Efficiency Standard Rating is now E.
Improvements Required to F and G rated Properties
Landlords are therefore required to improve the energy efficiency of their properties where the rating is set at F or G.
If your property does not meet the Minimum Energy Efficiency Standard rating of E and you wish to let or (as of 1st April 2020) to continue to let the property you will need to ensure that the energy efficiency improvements are made to meet the minimum E rating. Third party funding arrangements are available to help cover the costs or landlords are required to self-fund up to a maximum of £3,500.00 (including VAT). The spending cap of £3,500.00 doesn’t apply where third party funding is available to fully cover the costs of identified improvements.
If the cost of carrying out these improvements exceeds the spending cap and third party funding is not available, a High Cost Exemption is required and to obtain this quotations must be provided from three different installers providing evidence that the cost of the required energy efficiency measure is greater than the £3,500.00 spending cap.
If you have any queries on the Minimum Energy Efficient Standard and how this may affect you and your rental property, please contact us.