New legislation to Energy Performance Certificates (EPC) could affect your rental property by Vanessa Gills
6th January 2018
New legislation to Energy Performance Certificates (EPC) could affect your rental property by Vanessa Gills
Vanessa is Head of Property Management and Anthony Webb, with over 20 years’ experience in the field. She has extensive knowledge in all legal aspects of property management and keeps abreast of the new legislation and regulations. With a flexible approach to lettings you will be sure to find the right package to suit you without comprising on service at Anthony Webb.
What is an EPC?
An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient). As a general rule, an EPC is required every time a home is put up for sale or for rent. So, a newly constructed home will have one, a landlord will need one to show potential tenants, and a seller must have one to show to potential buyers. The information provided on EPCs is also helpful for tenants looking to improve the energy efficiency of their rented home. As of April 2016, tenants can now seek permission from their landlord to undertake energy efficiency measures on their privately rented property. The requirement for an EPC has been the law since 2008, meaning that if your home has been let or sold since then it should have one. They remain valid for 10 years.
The energy survey required to produce an EPC is performed by an assessor who visits the property, examines key items such as; loft insulation, domestic boilers, hot water tanks, radiators, windows for double glazing, and so on. He or she then performs the calculation and rates the property on energy efficiency. The program gives a single number for the rating of energy efficiency, and a recommended value of the potential for improvement.
Changes to EPCs for landlords and tenants
From April 2018, landlords will be required to achieve a minimum rating of E on the EPC for their rental property. Unless there is an accepted exemption, landlords face a penalty of up to £4,000 for failure to meet the minimum efficiency requirement. Furthermore from 1 April 2020, landlords with an existing EPC must not continue letting a rental property if that property has an EPC rating of band F or G. Where a property is rated band F or G a landlord will need to make improvements to the property to raise the EPC band to a minimum level of E. Anthony Webb have our own in-house qualified Energy assessor, Martin McKelvey. Should you have any questions or concerns relating to EPC’s or a rental property that you own please do not hesitate to contact the office on 020 8882 7888.
Section 21 – QUICK UPDATE As a result of changes made by the Deregulation Act 2015 and The Assured Shorthold Tenancy Notices & Prescribed Requirements (“the Regulations”) from the 1st October 2015 no notice under Section 21 of the Housing Act 1988 may be given at a time when the landlord is in breach of a prescribed requirement. By virtue of the Regulations, all landlords are required to provide tenants with an Energy Performance Certificate and Gas Safety Certificates free of charge. Similarly, tenants must be provided with the prescribed document, which is in effect for the time being, entitled “How to Rent Guide”. The Regulations don’t specify a date by which the documents must be given to tenants, but it’s clear that a notice under Section 21 will be invalid if served prior to the documents being given. It would therefore be best practice to ensure that the prescribed documents are served on the tenant at the inception of the tenancy, alongside the agreement.
