Energy ratings and lettings from April 2018

Energy ratings and lettings from April 2018

23rd October 2017 | Chris Stewart

Under the Home Energy Conservation Act 1995, private domestic and non-domestic landlords will need to ensure that their properties reach at least an E rating (or have installed those improvements through subsidies available to pay for them) before granting or renewing a tenancy after April 2018. These requirements will also apply to all new lettings from April 2020 in the domestic sector, and from April 2023 in the non-domestic sector.

This will have serious consequences for all those properties which have an Energy Performance Certificate of F or G (the grades run from A-G with A being the most efficient). With certain exceptions, Landlords will not be able to let any properties which fall into these bands if they fall vacant, and whilst freehold sales are not within the scope of the Regulations most purchasers will take the EPC rating into consideration and values are likely to be affected. Landlords will be required to upgrade their properties, unless the property falls into certain limited exempt categories or it can be demonstrated that all cost effective measures have been taken but the EPC still remains in Band F or G.

Often there are cost effective solutions which would help to achieve these improvements. Employing the services of a Level 4 Accredited Energy Assessor (or a Domestic Assessor for Domestic properties) will make use of their experience, and they will be able to advise the most effective upgrades for example new boiler, new lighting or insulation. You should then have a new Energy Performance Certificate produced after works have been carried out to demonstrate a better rating than F or G.

Alternatively the EPC may simply be out of date. In the course of an EPC’s life of 10 years many upgrades may have been made, so a new Energy Performance Assessment should be produced to take these into account.

Mass & Co deal with all forms of residential and commercial property in relation to valuation, surveys, lettings, acquisitions and investment transactions. In addition we work closely with Accredited Assessors (whose assistance with this brief summary is acknowledged) and can help property owners maximise the value of their assets or minimise their costs.

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The Royal Institution of Chartered Surveyors was founded in 1868 and is now responsible for around 120,000 members worldwide. Its members are subject to regulation and periodic review as well as operating to strict Rules of Conduct.

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