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The new energy efficiency regulations and the potential cost to landlords

The new energy efficiency regulations are being introduced in two phases. The first phase was introduced on 1st April 2016 and the second will be introduced on 1st April 2018.

The regulations introduce energy efficiency standards for landlords, but what are those minimum energy efficiency standards?

From 1 April 2018, private landlords will not be able to enter into new tenancies for either domestic or non-domestic properties that have not achieved at least an ‘E’ EPC rating. This requirement also applies to all tenancies that result from an extension or renewal of an existing tenancy.

It was previously understood that private landlords would be entitled to apply for loans from the government Green Deal scheme for gas and electric improvements, however this funding has now been withdrawn.

The new Department for Business, Energy and Industrial Strategy is proposing that landlords meet the cost of any energy efficiency improvements without grant funding. It is understood that they are suggesting landlords could simply ‘borrow more’ to cover the costs.

We advise that landlords start to review their property portfolio to identify properties that will require work to achieve an ‘E’ energy rating.

Landlords need to think about how they can achieve any necessary improvements where a tenancy is renewed.

Plan ahead and the cost of any works can be spread over a longer period of time so that all of your properties are EPC certified energy efficient homes ready for the introduction of the energy saving regulations in 2018.

Laura Albon has been working in litigation for nearly 10 years. She works almost exclusively with property investors and agents across the whole country. She trained with the partners of Helix Law and has extensive experience in possession, service charge recovery, breach of covenant and commercial contract claims. She is able to pursue matters through the court and through The First Tier Tribunal (formerly the Leasehold Valuation Tribunal or LVT).

This article is written to raise awareness of the issues it discusses and it may not be updated after it is first written, even if the law changes. It is not intended to be legal advice and cannot be relied on as such. Helix Law is not responsible or liable for any action taken or not taken as a result of  this article. If you think the matters set out affect you and you wish to apply them to your particular circumstances then we are happy to give you free initial telephone advice. 

Contact Helix Law on 01273 761 990 or email: [email protected]