Energy Performance Certificate

Energy Performance Certificate

Changes in EPC Law affecting Residential Lettings

Energy Performance Certificate

An Energy Performance Certificate (EPC) is needed whenever a property is built, sold or rented. All Landlords must order an EPC before marketing their properties to sell or let.

What does an EPC contain?

An EPC includes information about a property’s energy use and typical energy costs. It also contains recommendations about how to reduce energy use and save money.

The EPC gives the property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for ten years.

Please note that you can be fined if you don’t get an EPC when you need one – The fixed penalty is £200 per dwelling !

How do I get an EPC?

There are many accredited assessors on the Isle of Wight that can evaluate your property and produce the certificate or Maher Ross can arrange this for you at a price of £54 inc VAT.

Details of other assessors can be found here https://www.epcregister.com/searchAssessor.html

EPCs and Section 21 Notices

As of 1st October 2015, Landlords must provide an EPC to tenants before they can issue a Section 21 Notice.

Tenants’ right to request energy efficiency improvements

As of 1st April 2016, tenants are able to request consent from their landlords to conduct energy efficiency improvements in their properties. The landlord cannot unreasonably refuse content.

However, it is the responsibility of the tenant to ensure that the works are funded. The intention is that no upfront costs should fall on the landlord, unless the landlord wishes to contribute. Details of 'Green Deals' can be found HERE

Minimum energy efficiency standards

From our friends at Painsmith solicitors :

A minimum energy performance rating of E will be required to rent a residential property as from 1st April 2018. This requirement will apply to all tenancies that begin or are renewed on or after 1st April 2018. 

Landlords that breach these regulations may face a fine of up to £5,000.

The new regulations will apply to assured, assured shorthold and Rent Act tenancies which have an EPC or should have an EPC. Where the EPC indicates a rating of F or G it will be considered substandard under the regulations. The regulations prohibit any landlord from letting any substandard property until the recommended energy efficiency improvements in the EPC have been carried out. Such works only needs to be appropriate, permissible and cost-effective under the regulations but landlords are free to carry out works to an even higher standard.

Local authorities will be responsible for enforcing the regulations. They have the power to serve a notice and request that a landlord provide further information to prove compliance. Where they find that a landlord is in breach they can impose a financial penalty. Further penalties can also be imposed where landlords continue to rent out properties despite the breach and original fine. Such fines will not affect the legality of the tenancy which means that rent is still due and payable.

There are exemptions to the regulations, however, this is an area in which government policy is uncertain. Parts of the enabling process for these regulations have already been deferred and it may be that they will not be introduced on time or further exemptions may be applied. In general, landlords who can carry out energy improvements at reasonable cost in between tenancies should probably seek to do so but it is probably worth deferring any big improvements until the position is clearer.

Painsith are specialists in Residential lettings and can be found at: http://painsmith.co.uk/