Minimum EPC Ratings for Rentals
This month sees the new requirement for privately rented properties to achieve at least an E on its Energy performance certificate (EPC). This means that it is unlawful to rent a property if it doesn’t not reach this standard as a minimum. (For existing tenancies, the compliance date is 1st April 2020 and for non-domestic properties, the deadline for incorporating any changes required is April 2023.)
It is down to the individual landlords how the minimum rating will be achieved, meaning they can choose the most appropriate/ cost effective solutions for their property. There are many ways of improving the energy efficiency of a property including simple changes such as replacing all the light bulbs or installing loft insulation. It is likely however, that other solutions will also be required to improve Energy Efficiency rating these could include:
- installing photovoltaic panels,
- replacing old leaky windows,
- upgrading the heating system,
- draught proofing the house
- installing wall insulation (externally, internally)
There will be some buildings exempt from this legislation these include: listed buildings, temporary buildings with a planned use of less than two years, residential buildings used for less than 4 months of the year and standalone buildings with a useable floor area of less than 50 square meters.
Only appropriate, permissible and cost-effective improvements will be required. Therefore, landlords will be eligible for an exemption when they can provide evidence that one of the following applies:
- They have undertaken those improvements that are cost-effective but remain below the require rating. (Cost-effective is classified as improvements with a payback period of 7 years or less).
- They are unable to install those improvements that are cost-effective without upfront costs because the funding entails Green Deal Finance, and they or their tenant fail the relevant credit checks.
- When a third party’s consent to undertake relevant improvements relating to the minimum standard was denied.
- Where the required works are expected to cause a capital devaluation of the property of more than 5%. (this will need to be verified by a suitably qualified independent surveyor).
If you are a landlord and wish to improve the EPC rating of your building stock why not give our team a call. We can help you develop a phased approach that can help you achieve the highest eco ratings over your chosen timetable. An ideal solution if you plan to live in the property after renting.