Residential Lettings Service – Energy efficient standards

Energy efficient standards

From 1st April 2018 there will be a requirement for all properties let in the private rental sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC).

The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020.

It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption, i.e. listed buildings. A civil penalty of up to £4,000 will be imposed for breaches.

This factsheet summarises the regulations. There are separate regulations effective from 1st April 2016 under which a tenant can request improvements which the landlord will have to implement to bring the property to an E rating.

For most landlords this will mean that they will no longer be able to rent out a property with a rating of F or G after April 1st 2018. As such landlords with properties in this EPC bracket should begin preparing now for 2018. Please read the Guide and if you have any questions we will be happy to help.

In the future these ratings may be changed again, so all or any improvements that can be made to improve the EPC rating to the highest achievable can only make such rental property more attractive to tenants.

Please Note:
When EPCs for sales properties reach their expiry date of 10 years, they do not currently need to be renewed until the property is placed on the market.  This will be different for rental properties however after April 2020 as when the EPC reaches 10 years old it will need to be renewed and a rating of ‘E’ achieved. In reality, it would be good practice for those EPC’s with ‘E’ ratings to be reassessed well before their 10 year anniversary so improvements can be made as if they don’t make an ‘E’ they won’t be able to be let.