Are you an energy efficient landlord and does your property comply?
Under the Government’s Green Deal initiative, the law on Minimum Energy Efficiency Standards (MEES) will change as of 1 April. It will have a big impact on the Private Rented Sector and landlords must prepare appropriately for it, or face being unable to let their properties, and a hefty penalty of up to £5,000.
From April, all rental properties (new lets and renewals of tenancies) are required, by law, to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). For existing tenancies, the law will change on 1 April 2020. Without an EPC rated E or above, the property will be deemed unfit to let – so those rated F or G – and if it is rented out at a lower rating, landlords will face civil and criminal charges for signing a new tenancy or renewing an existing one.
Given that one in 10 privately rented properties currently fail to meet the new efficiency rules, this could leave many landlords with a big headache. To avoid encountering problems, it’s important that landlords are given the right advice and guided through the new ruling to understand the impact on their investments, what they need to do to protect these investments, and also comply with the law.
The role of the agent
Choosing an appropriate agent to work with is really important. A good agent will provide the right information to landlords and guide them through any key decisions and changes to the industry.
With the new energy efficiency measures, diligent agents would have been speaking to their clients for the last few months, like we’ve been, and making them aware of the legislation and what action they might need to take and why.
GFW Letting manages the whole process on behalf of landlords. In the first instance, we will ensure your properties have valid and up-to-date EPCs that take account of any changes and improvements made to a property. In some cases, we have carried out a new EPC to get the latest recommendations and the new software used to calculate the ratings has improved the EPC to a higher rating with no work being done so we strongly suggest re-doing an EPC as the initial course of action.
If the EPC is still failing to meet the minimum measure and is still an F or G after being repeated, then a Green Deal Assessment is required. Again, we will manage this on a landlord’s behalf, working with a Green Deal Assessor who will conduct this. An Assessor will visit your property and then discuss with us its energy use and help decide if you could benefit from Green Deal improvements.
If any home improvements need to be made, and can be funded under the Green Deal, then these will be done at no cost to the landlord. If works cannot be funded under the Green Deal, then the property can be registered for a five-year exemption. The main exemptions include the situation where all required works have been carried out, but the EPC rating is still below E, or the necessary works cannot be completely financed at no cost to the landlord. Whatever the circumstances, GFW Letting will liaise with the Assessor regarding any available funding or exemption registration on your behalf and ensure that you’re adhering to the new legislation.
To discuss an EPC assessment, please email or call Donna Cheney on firstname.lastname@example.org or 0191 284 7171.