Energy Efficiency of Tenanted Residential Property

Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015From 1stApril 2018 part of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 comes into force which will require residential properties rented within the private sector to have a minimum energy performance rating of E (minimum 39) confirmed in an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which falls within bands F and G, which will be deemed as sub-standard. Landlords who are in breach of the new regulations may find themselves subject to a fine of up to £4,000.There are exemptions relating to whether an EPC is required and may include:

  • The building is Listed
  • Temporary buildings with a planned use of 2 years or less
  • Residential buildings which are intended to be used less than 4 months of the year
  • The owner or landlord could reasonably expect the energy consumption of the building to be less than 25% of all year round use.
  • The building is suitable for demolition
  • Some holiday lets if the occupant is not responsible for the energy costs
  • Let rooms in a house

The components of a building which can be improved to produce an upgrade in the EPC band may include:

  • Loft insulation
  • Cavity wall insulation
  • Solid wall insulation
  • Hot water cylinder insulation
  • Draught proofing
  • Low energy light bulbs
  • Cylinder thermostat
  • Room stat
  • Thermostatic radiator valves
  • Boiler upgrade
  • Double glazing
  • Solar panels

The components which produce the greatest uplift in rating are loft insulation, solid wall insulation and boiler upgrades.It is therefore recommended that owners of rental property which require an EPC should read the recommendations set out in the existing EPC identifying those elements that will give the required improvement in the energy rating. These upgrades can then be implemented and a new assessment commissioned.In addition, it should be noted that from 1st April 2016 separate regulations came into effect such that tenants have been able to request consent from their landlords to carry out energy efficient improvements to privately rented properties. Landlords are not able to unreasonably refuse consent. It is however the responsibility of the tenants to ensure that the works are fully funded and the intention is that no upfront costs should fall on the landlord, unless the landlord agrees to contribute.A useful website to visit for more explanations on how landlords can upgrade their properties to band E and above can be found at: further information please contact either Jane Sewell or Chris Oakes of Hazells on 01284 702626