We all know of properties that are lived in by more than one household sometimes family members,...
Landlords have a duty under the Domestic Minimum Energy Efficiency Standard (MEES) Regulations to maintain a minimum energy efficiency level for privately rented domestic properties.
This applies to assured tenancies, regulated tenancies, and domestic agricultural tenancies.
The requirement for an Energy Performance Certificate (EPC) was introduced in October 2008 but on 1 April 2018 the MEES regulations came into force, requiring a minimum rating of Band E. This initially applied only to new lets, but from 1 April 2020 has applied to all rented domestic properties (with some exceptions for pre-2008 tenancies) unless an exemption has been registered. This might be, for example, that all relevant improvements have been made, or that the cost of the improvements would exceed the current cap of £3,500.
The government proposal now is that rented domestic properties should have a minimum EPC rating of Band C. This will apply to new lets from 31 December 2025, and to all residential tenancies by 31 December 2028, where ‘practical, cost-effective, and affordable' (which are terms which will be defined by regulations). There will still be exemptions based on the ‘affordability’ criteria (which will again be set out in regulations).
That’s the proposal as we understand it currently, and the Minimum Energy Performance of Buildings (Number 2) Bill is making its way through the Parliamentary process (currently at second reading in the Commons so some way to go yet).
It is understood that the penalty for not having a valid EPC will be raised from £5,000 to a maximum of £30,000 from 2025.
An EPC will last for 10 years and if it runs out then you will only need to get a new one if you re-let the property to a new tenant (or selling the property).
The bill also reviews the position of owner-occupied properties and proposed a mandatory EPC minimum Band C from 2035 (subject to similar exemptions). However, mortgage lenders will be required to ensure by 31 December 2030 that the whole of their portfolio (not just rented properties) have EPC Band C. Given the average length of a mortgage term, we can expect to see that lenders will shortly start applying restrictions to all new applications.
This is part of the government’s general direction toward energy efficiency. The Bill also provides that all new homes must be ‘zero carbon ready’ from 1 January 2025, and for rented non-domestic buildings to meet EPC Band B by 2030. The Bill affects properties in England and Wales.
