Energy Efficiency of your Rental Property

Time is running out for landlords to check the energy efficiency of your rental property. On 1 April you will only be able to issue a new tenancy for any domestic property that has an Energy Performance Certificate (EPC) E rating, or higher.

Landlords who have properties with a current EPC, and that is already tenanted, do not have to meet the E rating target until the tenancy is renewed or until 2020.

The EPC must be the current one and must be in date (no more than 10 years old).  If the EPC has expired and there is no need to renew it (e.g. the tenancy has remained unchanged since the EPC lapsed) these rules do not apply. Landlords will only need a further EPC the next time that the property is sold or a new tenancy is required. But at this time the property will need to comply.

The Local Authority may issue a fine of up to £4,000 to anyone issuing a new tenancy for a property rated F or below. This includes reissuing an existing tenancy or rolling from a fixed-term assured tenancy into a statutory periodic tenancy. Where the tenant stays after the fixed-term has run out this is treated as a new letting for these purposes.

HMOs

For Houses in Multiple Occupation, where the building has a current EPC, the whole building will need to comply before individual rooms can be let.

Flats

It is slightly different for flats because where the flat has its own EPC and the building that it is situated in also has an EPC, then it is the EPC for the flat that will apply to these regulations.

How Energy Efficient Is My Property?

The Energy Saving Trust has a useful Energy Check tool that can help you estimate how energy efficient your property currently is. It also suggests cost effective improvements and calculates how much money they could save you over time.

Landlords do not need to obtain a new EPC after energy efficiency improvements have been made. However, this is probably the simplest way to prove that your property complies.

What Improvements Are We Talking About?

The landlord is left to choose which works need to be undertaken, so long and the minimum E rating is obtained. Obviously there is nothing to stop a higher rating being achieved. The improvements need to be cost-effective and appropriate. Landlords could make any of the following improvements:

• Air source heat pumps
• Thermostat boilers or thermostat room heaters
• Cavity wall insulation or solid wall insulation (internal or external)
• Cylinder thermostats
• Draught proofing
• Duct insulation
• Hot water showers/systems (efficient) or hot water taps (efficient)
• Fan assisted replacement storage heaters
• Flue gas recovery devices
• Ground source heat pumps
• Heating controls (for wet central heating systems and warm air systems)
• Heating ventilation and air conditioning controls
• High performance external doors
• Hot water controls (including timers and temperature control) or hot water cylinder insulation
• Lighting systems fittings and controls (including roof lights, lamps and luminaires)
• Loft or rafter insulation (including loft hatch insulation) or other roof insulation
• Mechanical ventilation with heat recovery
• Micro combined heating power
• Micro wind generation
• Pipework insulation
• Gas fired condensing boilers
• Replacement glazing
• Oil fired condensing boilers
• Warm air units
• Radian heating
• Ceiling improvements (including duct ceiling)
• Secondary glazing
• Solar water heating
• Solar blind, shutters and shading devices
• Transpired solar collectors
• Under floor heating or under floor insulation
• Waste water heat recovery devices attached to showers
• Water source heat pumps

As an additional consequence, any of these improvements should mean less maintenance and will certainly make your property more attractive to potential new tenants.

If you would like any further information about the energy efficiency of your property you can speak to the team at New Mills Properties who would be very pleased to advise you.