Since 2015, landlords offering new residential tenancies have been obliged to provide tenants with Energy Performance Certificates (EPCs) for their property. From April 2018 onwards, landlords owning properties with EPC ratings of F or G will no longer be able to grant new tenancies on those properties, nor will they be able to renew or extend any existing tenancies. From April 2020, the rules will apply even more strictly to prevent landlords from continuing to let properties to existing tenants where the EPC rating is F or G.
So what should a landlord do in that situation? If the improvements can be made to improve the energy rating to E then that deals with the situation. If it is not possible for a landlord to achieve that, though, there are a number of exemptions that, if they are formally registered, can avoid penalties for non-compliance,
- if all the energy efficient works have been completed but the property remains sub-standard
- if a landlord can obtain written expert advice to state that any recommended wall insulation will negatively affect the fabric or structure of a property
- if consent is needed from a third party and, despite reasonable efforts, cannot be obtained then an exclusion will apply to those particular works
- if an independent surveyor provides written evidence to confirm that the improvements would reduce the market value of the property by 5%
- if the landlord cannot obtain any statutory funding to cover the cost of making the improvements then they may be exempt
If you are a landlord and are unsure whether you may be entitled to register an exemption then please contact Mr Rob Synnott in our Litigation Department without delay to discuss whether you are eligible.
