Updated: 25/02/2022
What are the current requirements for landlords?
At present, the law requires landlords to have an Energy Performance Certificate for their properties with a minimum rating of "E" or above.
Energy Performance Certificates last for ten years and have a rating with a scale ranging from "A" (the most efficient) to "G" (the least efficient).
What are the proposed changes?
The Minimum Energy Performance of Buildings (No. 2) Bill is currently going through Parliament and will likely become law.
The new legislation will require all domestic properties to have an Energy Rating"C" or above. The new regulations will apply from 31st December 2025 for new tenancies and 31st December 2028 for existing tenancies.
Why are the changes being introduced?
The Government is committed to net-zero carbon emissions by 2050. Improving the energy efficiency of homes is a crucial measure that will help achieve that goal and lower the cost of energy bills for tenants.
What is the impact on Landlords?
Landlords with properties with a rating lower than "C" will need to improve the property to increase its energy efficiency. The deadline of 2025 may seem a long time away now, but depending on the property's current rating, the work required could be significant and may take time to arrange and carry out. These improvements will have costs and may pose challenges with occupied properties.
What should landlords do?
The first thing Landlords should do is take a look at the rating on their current Energy Performance Certificate. You can view your certificate at the following government website https://find-energy-certificate.service.gov.uk/find-a-certificate/type-of-property.
If the property already meets the new minimum standard of a "C" rating, there is nothing for Landlords to do.
However, if the rating is lower than "C" (D, E, F, or G), then Landlords should take a look at the "How to improve this property's energy performance" section of their certificate. This section describes the recommendations on improving the property's energy performance and the potential rating which could be achieved. The assessor also provides typical cost estimates to help guide homeowners towards the most cost-effective ways to achieve the necessary improvements.
Firstly, Landlords should consider if they have already made any of the recommended improvements since the last assessment. If so, it may be worthwhile obtaining another assessment to find out the actual rating.
If none of the recommended improvements has been made, it would be a good idea to start and obtain estimates of your own for the most cost-effective recommendations. You should also find out about how long it may take to carry out the work and if there would be any impacts on occupants.
Investing a little time now should help Landlords understand, prepare and budget well in advance for any work required to keep your property compliant with the law.
If you would like to know more about how Landlords can plan and prepare for property maintenance, check out our following guide:
The Property Hive are here to help, so should you like more information regarding these proposed changes or discuss your property, please give us a buzz on 01302 247754.
