Landlords are required to have an up-to-date EPC before letting a property, which must be advertised and provided to prospective tenants. The EPC shows the current energy efficiency rating of the property, the likely energy bills and measures recommended to improve the rating, make the house warmer and reduce heating costs.
On 1 April 2020, minimum energy efficiency standards (MEES) will apply to existing domestic tenancies as well as new tenancies. These applied for all new tenancies (including renewing or extending) from April 2018 and will apply to existing non-domestic tenancies from April 2023.
These minimum energy efficiency standards mean that you cannot rent out a property below a certain Energy Performance Certificate (EPC) rating, unless you have applied for an exemption. The standard is currently EPC rating E. This means that rental properties below an EPC rating E can be enforced and face penalties. The maximum fine is £5,000 per property.
For advice on energy efficiency improvements and funding options available, please give us a call on 0800 804 8601 (Monday to Friday, 9am to 5pm) or email email@example.com. More information from the government Department for Business, Energy and Industrial Strategy (BEIS).
Energy Company Obligation (ECO) grants may be available to landlords where tenants meet Affordable Warmth eligibility criteria.
A-E rated properties are eligible for the same measures as privately owned properties, including insulation, inefficient heating replacements with insulation, efficient heating replaced by renewables and district heating, but not broken heating repairs and replacements because these are the responsibility of the landlord.
Properties that do not meet the minimum standard i.e. F and G rated properties are not eligible for grants for most measures, apart from hard-to-treat improvements like first time central heating, solid wall insulation and renewable heating systems.
The government have launched a new Green Homes Grant scheme, for energy-saving home improvements, in September 2020. Through the scheme landlords and homeowners in England are able to apply for vouchers to pay for green improvements such as loft, wall and floor insulation or low carbon heat, which cover two-thirds of the costs up to £5,000 per household. More information here.
The Green Homes Grant counts towards state aid, so you must check that applying does not exceed your state aid threshold. You can only get a Green Homes Grant if your rental property meets MEES or you have an exemption.
We provide advice to tenants online, by phone or email and through our warm and well projects Southampton Healthy Homes and Hitting the Cold Spots in Hampshire.