NEW rules kicked in on 1 April 2019, which mean landlords with properties on the Private Rental Sector (PRS) exemption register because their rental properties were rated at an Energy Performance Certificate (EPC) F or G must now contribute £3,500 to improving the minimum energy efficiency standard of each of their properties that falls below the minimum E rating.
EDJ Services produce Minimum Energy Efficiency Standards (MEES) Reports. These reports tell you where a property is failing and the measures that can be taken to remedy this, along with the difference they make in terms of a property EPC rating. The cost of the report includes a return visit for the new EPC assessment once works are completed.
Since 1 April 2018, landlords have not been permitted to let a residential property with an EPC rating below an E on a new tenancy (extension or renewal). That is, unless they registered an exemption on the Private Rented Sector (PRS) exemptions register.
For landlords who weren’t eligible for the PRS exemptions register, they were given an extra two years to bring their ratings up to an E or above if the tenancy agreement pre dated April 2018. If this is you…. your two years is up on 1 April 2020, now less than 12 months away.
Under the new rules landlords must now contribute £3,500 (including VAT) towards achieving an E rating for each property they own that falls below an E rating before applying for their property to go on the PRS register.
Should the property not achieve an E rating after spending £3,500, the landlord can register a “high cost” exemption on the PRS exemptions register. Along with proof of spend they must also submit three independent quotes proving that over £3,500 must be spent to achieve the E rating.
If you are a landlord who has spent money on your property between 1 October 2017 and 31 March 2019 to improve energy efficiency, these costs can be deducted from the £3,500 cap to determine the value of any further improvement to be made.
It might be that you are a landlord with a property on the PRS exemption register because your tenant refused a Green Deal finance plan or because tenant just didn’t want energy efficiency measures installed. This “consent” exemption also no longer exists. Measures must now be taken to bring the property up to the minimum E rating.
More information and guidance can be found at the links below:
