Most landlords will by now be aware of the new energy efficiency rules for residential lettings for those who aren't quite up to speed the RLA have a good summary here and article here.

As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC).

The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020.

It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches.

  • From 1 April 2018, the regulations will apply on the granting of:

    • A new tenancy to a new tenant and;
    • A new tenancy to an existing tenant, i.e. any extension or renewal to an existing tenant. This includes a statutory periodic tenancy which comes into existence at the end of the fixed term shorthold.
  • From 1 April 2020, the regulations will apply to all privately rented property in scope of the regulations.


So what does this all practically mean?

Those landlords who have a property without an EPC or an EPC below an E won’t be able to renew their tenancies after 1st April 2018 without falling outside the rules.

Theoretically, that means that if you allow a fixed term to roll over into a periodic tenancy prior to April 2018 you can avoid having to make any changes until April 2020.

However, this does leave landlords open to getting a months notice from their tenants at any time leaving them having to quickly arrange an EPC and any necessary improvements.   With this in mind, and without any case law, it’s a risk not worth taking.  Our advice is that those without an EPC (or one with a rating below E) should take action now before they are forced into doing so.

On top of all this let’s not forget that since the 2015 Deregulation Act landlords are unable to serve a valid notice for possession without having first provided an Energy Performance Certificate to their tenant.

If you need any more guidance, have any questions or would like to arrange for an EPC of your property give me (Nathan Gadenne) a call on 01929 551 661 and I'd be happy to help.