New EPC Regulations 2018 Belvoir Hull
ATTENTION LANDLORDS: You may have already heard about the new regulations for EPC's (Energy Performance Certificate) if you haven't Belvoir Hull will explain the new regulations that come into effect on the 1st April 2018.
As of the 1st of April 2018 there is a requirement for any properties that are rented to have a minimum EPC Rating of E. The regulations come into force for new lets and renewals of tenancies with effect from 1st April 2018, for all existing tenancies on the 1st April 2020.
It will be unlawful to rent a property that falls below E on the ratings and a civil penalty of £4000 will be imposed to anyone breaching the new rules. If the current property has a rating of F or G improvements need to be made for the properties EPC Rating to change to a minimum of E.
This means most landlords will no longer be able to rent out there property if the rating is F or G from 1st April 2018. If you are one of these landlords you need to start preparing now to ensure the rating is E or Higher before that date.
Assured Tenancies: Most residential lettings are let under A Shorthold Tenancy. This is the main type of Assured Tenancy used in the private sector. Where an Assured Tenancy (Shorthold or not) granted on or after 1st April 2018 or such a Tenancy continues after 1st April 2020, a minimum E Rating is required. If this is not acheived the landlord will be prohibited from letting a SUBSTANDARD property.
Exemptions, restrictions on making improvement's: Only appropriate and cost effective improvements are required under the regulation's. Landlord's will be eligible for an exemption from reaching the minimum standard if they can provide evidence that one of the following apply.
- They have undertaken improvements that are cost-effective but remain below the minimum requirement. As currently defined cost effective measures are those improvements that are capable of been installed within Green Deal's Golden Rule. This ensures that landlords have no upfront costs for the improvement works. However the scope of this exemption is under review and could be replaced with a cost cap, the improvements that must be considered are all relevent energy efficiency improvements.
- Where they are unable to obtain funding via the Energy Company Obligation (ECO), Green Deal Finance or Local Authorities Grants. The Landlord is required by contractual or legislative obligation to obtain a third party's consent or permission to undertake relevant improvements relating to the minimum standard, and such consent was denied, or was provided with unreasonable conditions.
- The Landlord requires consent, and the tenants withold consent, Check the tenancy Agreement as consent may not be required from the tenant for access to make improvements, consent may only be required to carry out repairs.
- Measures required to improve the property are evidenced by a suitable Qualified Chartered Surveyor, As expected to cause devaluation of more than 5% to the property, if that is the case then the property will be exempt.
- There will be no requirement for wall insulation if a suitably qualified person or independent installer can put in writing that the properties structure would be damaged.
IF ANY OF THE ABOVE EXEMPTIONS ARE APPLICABLE YOU NEED TO REGISTER WITH THE (PRS EXEMPTIONS REGISTER)
Registering Exemptions: In order to register any exemption the landlord must first set up a unique user account, once this is done the landlord will have to enter all property details, why they feel they are exempt and any supporting evidence to back this up. A copy of the current EPC is also required.
Duration of Exemption: Exemptions are only valid for 5 years, They will then need to be reviewed to see if it is still effective if not the work will have to be carried out. If the exemption is due to lack of tenants consent this will only last for 5 years or up to the end of the tenancy.
Compliance Notices and Penalties: If the local authorities suspect a landlords property is not compliant or not sufficiently proved an exemption, they can issue a compliance notice on the Landlord requesting further information. If insufficient evidence is provided a Penalty Notice can then be issued on the Landlord. The Maximum Penalty can be £5000, the landlord can get further Penalty charges if one of the following occurs:
1. The Tenant Changes
2. The Regulatory backstop comes into effect.
The Penalty Regime for Non Compliance are as follows:
- Providing false or misleading information to the PRS Register (Penalty £1000)
- Failure to comply with enforcement notices (Penalty £2000)
- Renting out a non-compliant property (less than 3 months) (Fixed Penalty £2000)
- Renting out a non-compliant property (more than 3 months) Fixed Penalty £4000)