1.6.2 Minimum Level Of Energy Efficiency
From 1 April 2018, all rented property let on assured shorthold tenancies, regulated tenancies under the Rent Act 1977 and four types of agricultural tenancy, which is to have a new tenancy must have an EPC rating of at least “E”.
This requirement also applies to all renewal tenancies to the same tenant for the same property on or after 1 April 2018. The duty is also triggered by any periodic tenancy arising on or after 1 April 2018 after expiry of any fixed term because the duty is not only triggered by a renewal but also “an extension”.
From 1 April 2020, all domestic property (including existing tenancies) of the types listed above, must have the minimum E rating. Non-domestic properties have until 1 April 2023 (including existing tenancies) to ensure they meet the E rating.
There are a number of exemptions for the minimum standard where-
- the property is unable to be brought up to the standard
- the tenant refuses consent
- the landlord is unable to obtain consent from a third party
- works required to bring the property up to the “E” level would devalue the property by more than 5% of market value
Where a domestic property has been let which does not meet the minimum standard, the tenancy remains valid between the landlord and tenant but a fine will be payable by the landlord of up to £5,000. Fines can be much greater for non-domestic properties depending on their size.
The Department for Business, Energy & Industrial Strategy has published useful guidance about the minimum energy requirements available at: https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents
The Exemptions Register can be found here: https://prsregister.beis.gov.uk/NdsBeisUi/used-service-before