Minimum energy performance requirement looms. Have you got the energy?

Winter for many tenants of residential or commercial properties can be costly and uncomfortable if they have to endure sub-standard heating systems in drafty buildings.

But all that’s set to change next year when the new energy efficiency regulations come into play on 1st April 2018.

Changes to the 2011 Energy Act are intended to cut emissions and will require landlords to meet a minimum efficiency rating of E on the Energy Performance Certificate (EPC).

So if your property is currently lingering on the lower end of an E, it’s time to think about how this can be improved upon.

Here’s what you need to know about the changes:

  • After 01/04/2018, it will be unlawful to grant new leases of commercial or domestic properties in England and Wales which do not comply with the new minimum energy efficiency rating of E
  • The regulations apply to new lettings and renewals with effect from 1st April 2018, and for all existing tenancies on 1st April 2020
  • Breaches could warrant a civil penalty of up to £4,000
  • Any privately rented property which has an Energy Performance Certificate (EPC), or is required to have an EPC, is subject to the rules, whether leased for commercial or personal use
  • Non-self contained units, such bedsits, are not obliged to have a separate EPC and therefore are not affected
  • Existing EPCs cannot be adjusted. You will need to obtain a new EPC

The most drastic energy-saving alterations, such as a new boiler or double glazing may be the biggest outlay, but they’re also the measures that could save money in the long run.

Properties with a good EPC rating can command a higher rental price, as tenants know they will be able to save money on their heating bills.

Landlords also need to take into account the £4,000 fine or a drought of tenants unwilling to pay for a residence, either for themselves or their business, that doesn’t provide them with the comfort they need.

Speak to the Chartered brokers at Hine Insurance on 0161 438 0000 to find out whether your existing policy covers you for alterations to your property.

Andy Guy
Andy Guy

Hi there! I'm Andy, I'm the Head of Charity and Faith Insurance at Hine Insurance with over 30 years experience.

In my spare time, I'm a trustee of a church and I enjoy walking and getting to grips with the garden.

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