From 1st April 2018 landlords will be prevented from granting a new tenancy of a domestic private rented property if the energy efficiency rating is below band E as evidenced on an energy performance certificate unless the property falls within very limited exceptions. Further, if, at that date, the property is already let out on a longer lease it must not continue to be let after 1st April 2020.
Similar restrictions apply to non-domestic private rented property save that for property subject to longer leases it must not continue to be let after 1st April 2023.
Sanctions for non-compliance will include financial penalties and publication of details of the breach on a register but perhaps a greater threat is the significant impact on marketability and the value of properties in bands F and G and the potential impact on rent reviews and dilapidations assessments on non-domestic properties.
It has been compulsory for energy performance certificates to be made available to buyers and tenants since 1st October 2008 and they remain valid for 10 years. However, if works of improvements have been undertaken to bring properties up to the minimum required energy efficiency standard then we would recommend that new energy performance certificates are obtained without delay and if works of improvement have not yet been undertaken that they are planned and executed in the near future – the Regulations take effect in 18 months time.
For advice and assistance on property matters please contact the conveyancing team on
0116 262 8596.