Member Article

Landlords urged to improve energy efficiency levels

North West law firm DTM Legal is warning landlords they have just one year to make their properties energy efficient or potentially face fines of up to £150,000.

The law firm has issued the warning following the announcement of new regulations that will make it unlawful to let a property with an Energy Performance Certificate (EPC) rating of F or G.

The scheme aims to ensure all rented properties are as efficient as possible and will apply to landlords in England and Wales. The regulations follow the Minimum Energy Efficiency Standards (MEES) which were introduced under The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

From 1 April 2018 all new tenancies and renewal tenancies for domestic and non-domestic properties, must have an EPC rating of E or above. Landlords with a current rating of F or G will need to make property alterations which can include anything from changes to lighting and heating systems, to more costly measures like changes to wall construction and roof insulation.

Those who do not make the appropriate changes will face penalty fines ranging between £5,000 and £150,000.

Victoria Evans, Associate at DTM Legal, said: “As an initial step, landlords should take the time to review their property portfolios, determine which properties fall within the scope of MEES and then assess whether any hold a rating of F or G, which would not be covered by an exemption. Landlords may not find this process quite so clear-cut and it’s therefore imperative that that they start dealing with this as soon as possible. This will then allow them to plan cost effective improvement works and implement them in time, to avoid the risk of a future unlawful letting.

“Prior to April 2018, landlords can still let properties with a sub-standard rating however they should make tenants aware about upcoming works and agree provisions in relation to their access to the property. In some cases, landlords will be able to negotiate lease terms whereby the tenant may be able to live in the property rent free in exchange for carrying out the improvement works themselves.

“Landlords need to take a proactive approach towards improving their EPC ratings as changes like structural alterations can be time consuming as well as costly. The landlords who do not comply could be faced with heavy civil penalties ranging between £5,000 and £150,000. I would also urge landlords to keep the regulations in mind when providing consent for “tenant alterations”, to ensure that they do not diminish the energy rating of the property.”

There are a few exceptions to the tenancies and types of buildings which are caught by the MEES. In addition there are some proposed exemptions to those properties which fall below the minimum standard, but these exemptions must be registered on the PRS (Private Rented Sector) Exemptions Register. Landlords looking to find out more about the new regulations can visit: https://www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml

This was posted in Bdaily's Members' News section by Violet Brown .