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01/03/2021

Future Rules for EPC Certificates

The UK Government claim that the proposals set out in the Improving the energy performance of privately rented homes consultation will bring significant benefits to landlords, tenants and our environment including:

New Energy Performance Certificate (EPC) requirements

All new tenancies from 1 April 2025 and all existing tenancies by 1 April 2028 must meet band C or higher on an EPC.
Requiring a valid EPC to be in place at all times while a property is let.
Other new controls/duties for landlords

The requirement for landlords to install ‘fabric first’ measures e.g. insulation.
The private rented sector to support the uptake of smart meters.
Tenants

Powers for tenants to request improvements and redress where a property is in breach.
Penalties and compliance proposals

Introduction of a private rented sector property compliance and exemptions database.
Increase the maximum fine level to £30,000 per property for each breach of the regulations.
Enable local authorities to use EPC Open Data, introduce benchmarking and inspect properties to improve compliance with the rules.
Requirements for letting agents

Requirement on letting agents and online property platforms to only advertise and let properties compliant with the rules.
Requiring landlords to provide an EPC prior to a property being advertised.
Cost cap and affordability proposals

Introduction of an affordability exemption.
Increasing the cost cap to £10,000 inclusive of VAT per property.
Updated exemption regime to come into force on 1 April 2025.

Get your EPC Certificates now which will last 10 years !!!

06/11/2020

New EPC Rules 2020 – Are you compliant?

New EPC Rules 2020 are now in place. As the world continues taking steps into a greener future, central government continues to introduce new regulations for landlords that aim to reduce our carbon footprint. As of April 1st 2020, The Domestic Minimum Energy Efficiency Standard (MEES) Regulations took a step further towards this. It is now a requirement that all currently tenanted properties have an EPC rating of E or above. Prior to this, the rules only applied to new tenancies.

With the majority of homes rating on average a D, the government is ensuring that all landlords adhere to these new guidelines. All new tenancies commencing on or after the 1st April 2020 must also meet the requirements and be certified E and above.

What is an EPC Certificate?

All homes, rented or owned are graded between an A and G based on energy efficiency. The closer to an A rating, the more energy efficient the property is. This in turn equates to lower energy bills and a smaller carbon footprint. The closer to a G rating, the less energy efficient the property is.

An EPC assessment can only be carried out by an accredited Domestic Energy Assessor. They will conduct checks on the building’s windows, insulation, lighting and heating system to produce a report on the overall energy efficiency. This report includes a detailed list of measures that can be taken to improve efficiency. For example; installing solar panels, upgrading the insulation or using low energy lighting.

What are the penalties for not complying?

MEES Regulations are enforceable by local authorities who have the power to check all domestic tenanted properties. If the property owner is found to be in breach of the regulations, the local authority is able to serve a compliance notice requesting further information to help them decide if a breach has occurred. This can be served up to 12 months after a suspected breach.

If the local authority finds that a property has been let and the regulations breached, a financial penalty can be issued up to 18 months after said breach. A fine may then be issued up to £5,000 per property, per breach.

Are there any exemptions?

Landlords are required to spend up to £3,500 in order to meet the required ‘E’ rating. There is also the possibly to obtain third party funding in some circumstances. If a property cannot be improved to EPC E after having spent £3,500 then a 5 year exemption can be registered.

Exemptions can also be registered in instances where it is not possible to improve the rating due to lack of external consent, such as from planning departments or freeholder restrictions.

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