Energy Efficiency Regulations: Changes on the Horizon

Since 1 April 2020, it has been law for landlords to ensure all their privately rented properties reach a minimum E-rating for energy performance. This includes all new and existing tenancies. Measures are now being put in place to enforce compliance, and plans are afoot to increase the rating requirement from ‘E’ to ‘C’ for all new tenancies from 2025 and all existing tenancies from 2028.

Until recently, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015  haven’t been widely enforced. However, housing minister Christopher Pincher has now revealed plans to clamp down on landlords and letting agents who fail to produce the minimum required EPC when renting property.

EPC enforcement strategies in the pipeline

According to Pincher, the housing ministry team will be working on strategies to enforce EPC compliance whilst building on enforcement pilots that are already in progress with local authorities. Meanwhile, over at the Department for Business, Energy and Industrial Strategy (BEIS), processes are being tested in conjunction with a number of councils with a view to monitoring and enforcement of EPC regulations.

Government consultation on revised EPC ‘C’ rating

Plans to change the minimum EPC rating of privately rented homes in England and Wales from band E to band C, also from the BEIS, would see all new tenancies having to comply by 2025, and all existing tenancies needing to meet the revised requirement from 2028.

Industry spokespeople have expressed concerns about the proposed measures, especially given the considerable number of properties involved, the fact that many properties in the private rented sector are of older type construction and therefore challenging and costly to bring up to a higher band rating, and of course the impact of the Covid-19 pandemic.

As a landlord or letting agent, you are invited to have your say on the changes, and can do so via this link:

Open consultation: Improving the energy performance of privately rented homes

The consultation closes at 11.45pm on 8th January 2021.

Energy Performance Certificates (EPCs) were introduced in 2007 as part of the now obsolete Home Information Pack. The certificate is designed to let potential tenants and property buyers know about the energy efficiency level of a home which will help them be more informed about the likely energy costs, as well as the areas of the property that are in need of attention from an energy efficiency point of view.

Landlords and property sellers are required by law to provide an Energy Performance Certificate. Once obtained, they need to be renewed every ten years.

From 1 April 2018, landlords have not been permitted to let a residential property with an EPC rating below E on a new tenancy. From 1 April 2020, the rule applied to all existing tenancies.

EPCs are based on a property survey carried out by a registered Domestic Energy Assessor and are subject to a fee.

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