A ccording to Kate Russell , policy and technical adviser at the Central Association of Agricultural Valuers ( CAAV ), it will be illegal to let out a property if its Energy Performance Certificate ( EPC ) band is F or G . “ However , the rules are quite complicated , so it ’ s worth seeking professional advice to check whether and when you need to comply .” “ Exemptions must be registered on the official register before the start of the tenancy and most only last for five years ”
At the moment the new rules apply to new tenancies and renewals or extensions of existing tenancies , but from 1 April 2020 they will also apply to existing
|
domestic tenancies - and from 1 April 2023 , to existing nondomestic tenancies .
There are potential traps for the unwary , according to Ms Russell . “ The rules on renewals and extensions of leases are not straightforward . For example , landlords of residential property should be aware that when the initial fixed term of an Assured Shorthold Tenancy ends and it becomes a periodic tenancy , the new rules will then apply ,” she explains . “ Anyone who owns a let property with an EPC of band F or G should take advice on how the new rules might affect them .”
One key question is whether the rules apply to listed buildings or those in conservation areas . “ Government officials still cannot give us a yes or no answer to that , so landlords will have to decide on the appropriate action ,” says Ms Russell .
Where a let property is in band F or G , landlords may be able to
|
apply for an exemption to allow the letting to go ahead . “ Exemptions must be registered on the official register before the start of the tenancy and most only last for five years .”
Grounds for exemption include where a landlord has done everything possible to upgrade the energy efficiency , but the EPC band is still F or G . For domestic dwellings , the Government is proposing a cap so that landlords must contribute up to £ 2,500 per property , including grants , towards the energy efficiency improvements . For non-domestic property the landlord ’ s contribution is set at a level which can be paid back in seven years through the energy savings .
Other grounds for exemption include where the tenant or a necessary third party refuses consent – which could be the listed building officer , says Ms Russell . “ There are also a number of temporary exemptions to cover
|
the purchase of property which is already subject to a lease , for example .”
The local authority is responsible for enforcing the new regulations , and can fine landlords £ 2,000 per domestic property and £ 5,000 for non-domestic property , she adds . “ It ’ s therefore worthwhile checking all of the details to check whether you need to – and do – comply .”
For more information , please visit : www . caav . org . uk
|