New energy efficiency regulations will require landlords to bring the properties they rent out in England and Wales up to the required standard.
In a bid to cut energy bills and UK-wide carbon emissions, new government rules will require landlords to upgrade the energy efficiency in hundreds of thousands of homes that are currently rated with an Energy Performance Certificate (EPC) of either F or G to a minimum of E by 1st April 2018.
The regulations also give further power to tenants from 1st April 2016, so that any tenant living in a property with an EPC rating of F or G will be entitled to request improvements to increase energy efficiency (including additional insulation).
Following the request a landlord is legally bound to bring a property up to an E rating – failure to do so could result in a penalty notice.
Though approximately ten per cent of England and Wales’ 4.2m privately rented homes currently fall below the E rating, once the rules have fully come into effect in 2018 landlords will be banned from renting out a property until the minimum EPC rating is met.
Landlords will only be able to let out F and G rated properties beyond 1st April 2018 where existing rental contracts are in place for a property, but they will not be able to renew a contract or let the property to someone else until it is brought up to the minimum standard.
Richard Lambert, CEO of the National Landlords Association, said: “The Government has struck a delicate balance between making clear what is expected and ensuring that there is a realistic prospect of landlords being able to comply.
“Setting the standard at a sensible rather than aspirational level, allowing time to achieve it, and granting exemptions if the necessary improvements cannot be funded through the green deal or other government subsidies mean that these new regulations will not impose an unreasonable burden.”