Are you aware of the changes to EPC legislation?
From April 2018
, landlord's will be unable to grant a tenancy, new or existing, for a property with an asset rating of F or G
, (subject to some exceptions where properties cannot be reasonably brought up to that standard). Thereafter, from the 1st April 2020
the minimum EPC rating of E
will apply to all existing tenancies.
Some exemptions will apply, for example listed buildings where the works will alter the character, where consent cannot be obtained or the costs of the works would devalue the property by at least 5%. We are told to assume a surveyor’s report would be required.
There was originally a discussion that properties that had completed all possible Green Deal work, if they were still in band F or G, that they would be exempt. The funding for new Green Deal works has now been withdrawn and new funding may come in this Spring! Although this is not certain yet, the current discussions are that you as a landlord, will have to spend £5,000 getting the property to a better EPC standard and then it will be allowed to be rented even if in bands F or G. This is only a discussion
at the moment and therefore it is not clear what evidence of spending will be required or over what time period the money would have been spent. Landlords in bands F and G should be prepared to spend up to £5,000 to get them out of these bands.
Further to the above, suggestions have been made to increase the minimum rating to D in 2025
and then again to C in 2030
. More information can be found below via the ARLA website:http://www.arla.co.uk/news/february-2017/government-guidance-on-complying-with-2018-energy-regulations/utm_campaign=8038153_ARLA%20News%20Issue%20123&utm_medium=email&utm_source=dotmailer&dm_i=Z6K,4SAA1,8S3AE4,I06R1,1