From April 2018, the government will be bringing in new rules for new, renewing and statutory periodic tenancies, must be a minimum of E rating. Those rated F and G will not be allowed to be rented out.

On the 1st October 2008, it became law for any property being let must obtain an EPC (energy performance certificate). It was originally introduced as part of the HIPS pack in 2007 for properties being sold.

 An EPC grades your property from A to G for energy efficiency, looking at your boiler, cavity wall insulation, roof insulation, double glazing, energy light bulbs etc. and the certificate lasts for 10 years.

However, from April 2018, the government will be bringing in new rules for new, renewing and statutory periodic tenancies, must be a minimum of E rating. Those rated F and G will not be allowed to be rented out.

 Average Annual Cost of Energy

Data shows that the average annual cost of energy for an EPC band G property is £2,860, and £2,180 for an F rated property. This contrasts with an average annual cost of £1,710 for an EPC band E property6. Therefore a tenant whose home is improved from EPC band G to band E could expect to see their energy costs reduced by £1,150 a year so long as there were no wider changes in how they use energy in the property.

Tenants and Landlords

The Regulations are intended to ensure that those tenants who most need more efficient homes, particularly vulnerable people, are able to enjoy a much better living environment and lower energy bills. Although newly built homes in the private rented sector tend to have higher energy-efficiency ratings than the average, there remains a stock of older, less modern properties, and many of these have poor energy efficiency and are difficult and costly to heat. These less efficient properties result in higher tenant energy bills, and for many, the likelihood of living in fuel poverty.

 A civil penalty of up to £4,000 will be imposed for breaches.

 The later this year, from October 2018, EPC’s 10 year certificates will start to run out, so those of any other grade A-E will be required to renew.

 If you are feeling overwhelmed with all the new legislations, then come and speak to Move On, our experience, expertise and knowledge could save you thousands!