The clock is ticking for landlords of energy-inefficient properties to make important decisions.
They have potentially less than four years in which to upgrade their stock – or dispose of it.
A new consultation has been launched, stating that the minimum standard for all private rental properties will be an EPC rating of E.
The requirement will apply from April 1, 2018. If a property does not meet the minimum E rating, it will not be possible to let it to tenants.
The requirement is given in the Department of Energy and Climate Change’s two consultations on the Private Rented Sector Minimum Energy Efficiency Standard Regulations. One consultation relates to domestic buildings (see first link) and the other to privately rented commercial properties.
The same minimum E rating requirement also relates to privately rented commercial properties.
The consultation is seeking industry reaction to how the proposed regulations will be implemented, which are part of the Government’s plans to reduce carbon emissions by 80% by 2050.
The consultation also refers to another deadline, April 1, 2016. From this date, private tenants will be able to ask their landlords for energy efficiency measures, which the landlords will not be able to “unreasonably” refuse.
This is long, but important documentation for agents and landlords.
On page 50 of the consultation on private rented property, it asks whether there should be a “soft” – ie, phased in – start. The regulations would initially apply to new tenancies but with a “hard backstop” date by which the requirements would have to apply to all tenancies.
The Government suggests that April 1, 2020, would be the date for this “hard backstop”.
On page 51, the consultation goes on to ask whether tenancy renewals should trigger the requirement for compliance.