As from the 1st of April 2018 most properties that are rented out privately will have to have an EPC, Energy Performance Certificate with a rating of E or above. This includes properties which are either relet or those which have renewed tenancies. Most properties which have an existing tenancy will have until April 1st 2020 to make sure that their properties comply to this new regulation. Landlords who do not adhere to this new regulation could face fines of up to £4,000.
If you’re confused about whether or not your property will need to show an EPC of E or above we have outlined a few details. New regulations will apply:
• If you are starting a new tenancy, including shorthold tenancies.
• Renewing an existing assured tenancy, this applies if it is a shorthold tenancy or if you are refreshing an exiting tenancy or extending an existing tenancy.
• If your rental property is at the end of a fixed-term tenancy, shorthold or non shorthold, as this is then treated as a new tenancy.
• If another family member takes over the rental contract.
• If a new tenancy is given to a tenant of the same or another property owned by the same landlord.
Buildings which are partly let, such as flats or bedsits will also have to have a rating of E or above, if the above circumstances apply. However a bedsits will not need an individual EPC as they are not self-contained whereas an apartment will need its own EPC as it has its own kitchen and bathroom.
If a landlord has a property with a continuous rental contract and plans to rent out a property after 2020 they will have to show an EPC rating of E or above, carrying out any necessary work before the 1st April, unless they can provide an exemption certificate, or the below example applies.