It is important that landlords are aware of the regulations that are in place in the industry, and at Spencer Harvey, we are always here to help out. With the Government finally issuing their Guidance with respect to the minimum level of energy efficiency that private rented properties have to meet, it is vital that landlords understand what these changes mean to them. This includes:
- From the 1st of April 2018, landlords will not be allowed to begin a new tenancy or extend a tenancy period to an existing tenant if the property holds an EPC rating of F or G. This ruling also holds for a tenancy switching from a fixed term period to a statutory periodic tenancy.
- From the 1st of April 2020, landlords will not be allowed to let a rental property that has already been let if it holds an EPC rating of F or G.
If a property is ranked as F or G, the landlord will be required to carry out improvements at the property which will see the EPC rank raised to at least an E. There are exemptions to this though, including:
- Where the landlords can show they are unable to raise or obtain funding to meet the costs of these improvements
- Where all reasonable improvements have been carried out and the property still fails to meet an E rating
There are a number of sources where a landlord can obtain funding, and a combination of these sources can be used at one time. These sources include the Green Deal Plan, an Energy company obligation or scheme of a similar nature, third party funding, central government funding or local authority funding.
Help is available for landlords to make these changes
If funding is available to make changes, landlords will be expected to obtain and utilise then but if funding is not available or applicable, the landlord will be considered as being exempt from the ruling. This is down to the fact that the energy efficiency regulation is organised on the principle of “no cost to the landlord”.
It should be noted that at this point in time, the Green Deal isn’t available to landlords. This may limit the usefulness of the regulation or it may indicate the Government is planning to bring back this scheme.
It can be difficult for landlords to stay in touch and up to date with all the regulatory changes they must comply with. At Spencer Harvey, we appreciate that landlords have a lot to consider and if you need guidance or assistance in knowing how these changes, and any other regulatory issues, affect you, we are more than happy to help you out. You can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html