Changes to Energy Performance Certificate for Landlords
The Government has removed the ‘no cost to the landlord’ exemption from the list of exemptions from the Minimum Energy Efficiency Standards. What does this mean? Well, now landlords must pay to bring rental properties in line with EPC (Energy Performance Certificate) standards before they move people in. But does this affect you as a landlord, or as a house-buyer? You bet it does. Read the full article to find out how.
Landlords must pay up to £3,500 per house for MEES energy improvements (MEES)
In April last year, a requirement was introduced for all privately rented properties to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). This affected all new tenancies from 1 April 2018 and all existing tenancies from 1 April 2020. So far, so straightforward. The implications this had for the private rental market was that it became unlawful to rent a property that breached the minimum E rating unless there was an applicable exemption. Landlords could face a penalty of up to £4,000 under these new rules and the possibility of not being able to rent out a property rated F or G.
In April 2019, it is expected that the “no cost to the landlord” exemption will be removed from the list of exemptions from the Minimum Energy Efficiency Standards (MEES), which could see landlords facing costs of up to £3,500 per house to bring properties up to E rating or above.
The change is expected to come into effect from April 2019. Landlords with properties that cannot be improved to grade E for less than £3,500 will still be required to carry out recommended energy improvement works up to the £3,500 cap; they can then register a new ‘high cost’ exemption.
“We have had a number of enquiries on the issue of EPC ratings from our clients who are landlords of properties in the private rental market”, says Louis Mathers, Director of Commercial & Residential Property at Parnalls Solicitors. “ We would advise any landlord who would like guidance on this issue to contact us as we can help give some clarity for individuals.”
If you would like more information on this issue, please contact Louis Mathers, Director Commercial and Residential Property on 01566 772375 or email firstname.lastname@example.org
This article is for general information purposes only and does not constitute legal or professional advice. Please note that the law may have changed since the date this article was published.
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