I was shocked to read a report that only 4% of landlords and tenants are aware of the new Minimum Energy Efficiency Standards being introduced to the rental market. Put simply, whilst every rental property needed an Energy Performance Certificate (EPC) as of October 2008, from 1st April 2018 any property with a rating lower than an ‘E’ cannot be let out! Existing tenancies will need to abide by this from April 2020 too, although some exemptions do apply.
Considering last year there was believed to be 64,092 new tenancies created at properties with an energy rating below an E, there are a large number of landlords who will soon be open to a fine of £4,000.
The property will be given an energy efficiency rating from A (highest) to G (lowest). EPC’s are valid for ten years; so I’d advise landlords to check each rental property has one that’s in-date, has at least an E rating and that the document is given to tenants before they move-in (not doing so prevents you from regaining automatic possession of your property). If you use a letting agent be sure that they are taking care of this for you, as ultimately it’s the landlord that faces the consequences of not abiding by the legislation.
Those with properties that fall short of the necessary rating have a couple of options. Improvement measures can be taken to improve the energy efficiency and thus the rating. It may help to know though that the parameters of the rating system have changed recently. I recently advised a new landlord of mine whose property had an EPC with an F rating from 2014 to get it re-assessed, which resulted in a newly updated D rating; making it legal and ready to rent with the minimum fuss, effort and cost to the landlord.
I believe it’s likely that the energy efficiency rules will get more stringent in the future though. Whilst an E rating may be okay now, I suspect calls for further environmental improvements will see the minimum rating increase in years to come. Landlords would be wise to consider this when viewing a property with the intention of buying it to let out, or be aware that (often costly) improvements may be needed in the future.
If you’re in the process of purchasing a buy-to-let property and would like me to check its long-term viability, please get in touch.
For more tips about buying, selling, letting and renting in Chichester, please visit www.chipropertynews.co.uk
(This article was featured in the Chichester Observer's property section on 29th March 2018)
Clive Janes, CRJ Lettings.
If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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