What are the new Regulations?
From April 2018, the regulations will make it unlawful for private sector landlords to let residential or commercial properties to new or existing tenants, without an Energy Performance Certificate (EPC) band rating of E or above.
Properties which do not require an EPC under the current regulations will be exempt from the new regulations. However, there will be very few exemptions available to Landlords.
From 1st April 2018, the regulations will be enforced upon the granting of a new lease and the renewal of existing leases. Landlords will be required to ensure compliance before the lease is granted.
From 1st April 2023, the regulations will be extended to cover all leases, including where a lease is already in place.
Implications for Landlords
The regulations will have a significant impact upon Landlords, including:
• It will make some properties illegal to let unless they are upgraded to meet the minimum standards. This may take time and during that time the Landlord will miss out on rental income.
• Valuations of such properties could be affected if their marketability is diminished, which could in turn effect mortgages.
• Rent reviews for properties in this situation could also be affected.
• Implications for dilapidations assessments may also exist.
Enforcement and Penalties
For any Landlords found to be in breach of the regulations, a maximum penalty of £150,000.00 can be imposed. These are calculated upon the rateable value of the property and can be issued on every property found to be in breach.
For this reason it is not advisable to wait until the regulations are in place. Landlords should take a proactive approach and consider their portfolios now.
If you are uncertain about the new regulations or require further advice on the matter, please contact us at Clark Willis on 01325 28 11 11.