At ‘Iles & Jenkin’ we are proud of being experts on the local property market.
We are equally proud of keeping a focussed eye on any changes to laws and legislation which may affect our Landlord clients.
One of the fairly recent changes is 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).
In layperson’s terms, EPCs rate the energy efficiency of a property from A to G (A being the most energy efficient, G being the most inefficient). They also contain recommendations on how you can make upgrades to your property to improve the EPC rating, and the approximate cost of doing so.
The regulations came into force for new lets and renewals of tenancies with effect from 1st April 2018 and will come into effect for all existing tenancies on 1st April 2020. It will then be unlawful to rent any property which breaches the requirement for a minimum E rating (unless there is an applicable exemption). A civil penalty of up to £4,000 could be imposed upon Landlords for any breaches of the regulations.
Since the law was introduced, we’ve had lots of conversations with our Landlords about what this will mean for them. We are also keeping a close eye on any properties that we manage with long term tenants which fall below the energy rating threshold, to ensure that the Landlord is aware of the deadline of 1st April 2020 to carry out any necessary improvement work to increase their EPC rating.
We’ve also had many conversations with Landlords who manage their properties themselves and who were unaware of the new regulations, and also some who have managed property and their Letting Agents has not advised them of the regulations, both of which are scenarios that could potentially leave them vulnerable to falling foul of the law.
One thing is certain though; if you are a Landlord considering purchasing a buy to let property, please look closely at the present EPC rating and if necessary, factor in any extra costs this new law could make before you negotiate the purchase price!
So, if you have a Buy to Let property, or are thinking of investing in one, please give us a call on 01934 512537 and we can explain more about these and any other changes that you should definitely know about.
And if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.
Thanks for reading!