New EPC rules for 2018 by Pritpal Chahal

At present, Landlords are required to obtain new Energy Performance Certificates (EPC) every 10 years. The Energy Efficiency Rating is measured by a rating system ranging from A to G. ‘A’ being very energy efficient with lower running costs and ‘G’ meaning the property is not energy efficient and consequently may have higher running costs. By June 2017, 37% of properties were awarded with a rating in Band D, second was Band C at 28%. (Gov UK: Energy Efficiency Statistics)

Legislation was passed in 2015 which meant that from April 2018, domestic and non-domestic properties in England and Wales would have to meet a minimum efficiency standard rating of an E.

If Landlords do not have this minimum rating, they will not be able to issue a new tenancy or even renew an existing tenancy from 1st April 2018. If there is a breach, Landlords can be fined up to £5,000.

In 2018, the EPC changes will impact and apply to all new tenancies. Then, in 2020, the same guidelines will apply to all tenancies whether existing or new.

The EPC report contains a list of recommendations to boost the efficiency of the home, this is something you ought to consider if you know your EPC rating is lower than an E rating.

As with most things, there are some exception to the rules. If you fall within one of the exceptions you will be able to register for an exemption on a central register which will go live in October 2017.

One of the exemptions concern a devaluation. This is where an independent surveyor concludes that the relevant upgrading to a property could actually devalue the market value of the property. The decrease in value must be more than 5%.

Another exemption is where consent from planning authorities, tenants or a superior landlord has been refused or has been provided with conditions which the landlord cannot reasonably fulfil.

You must bear in mind that exemptions, if provided, will only be valid for 5 years and will not be transferable to a new landlord.

Should you require further advice, please feel free to contact Pritpal Chahal or one of our Solicitors in Coventry Askews Legal LLP on 02476 231000.

 

Askews Legal LLP – Solicitors Coventry.