Changes are on the way that will have a significant impact on the private rental sector, the effects of which could be felt in as little as 12 months.
In England from 2018, landlords will not be permitted to rent out properties that do not meet minimum energy efficiency standards.
Energy Performance Certificates (EPC) rate a let property’s energy efficiency from a high efficiency of A, to the lowest efficiency of G. Landlords will be required by law to ensure that their let properties meet an energy efficiency rating of at least E by April 2018.
From April 2016 tenants will have the right to request consent for improvements, to make homes cheaper to heat. Landlords will not be able to unreasonably refuse these improvements. Details of suggested improvements may be outlined on the current Energy Performance Certificate for the property.
As of April 2018, landlords will only be able to let F and G rated properties for the remainder of existing tenancies. Tenancy renewals of property rated F and G will require an upgrade to an E rating prior to re-letting. In essence, the current policy is that if property is not up to the minimum Energy Performance Certificate rating of E within three years, the property cannot be let from April 2018.
Landlords may be able to seek funding to aid with energy efficiency improvements through the Green Deal.