As of the 1st of April 2018, any new tenancy agreement or those being renewed or extended, will be required, by law, to have a minimum energy performance rating of E on the EPC (energy performance certificate). This means that after 1st April you can no longer rent out a property with an EPC rating of F or G. If this is the case, energy efficiency improvements will need to be made to increase the properties energy efficiency.
In addition, this legislation states that all existing tenancies need to be compliant by 1st April 2020. Meaning that for all rented properties, if the current EPC rating is below an E you will need to have a new EPC before this backstop date, regardless of the expiry date. For instance, if your existing EPC expires on 5th May 2020 and its current rating is F, energy improvements will need to be made and a new certificate will have to be issued, with a rating of E or above, before 1st April 2020.
Energy performance certificates were first required on rental properties where tenancies commenced on or after 1st October 2008 and these last for 10 years.
It will be unlawful to rent out a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption, of which there are a number off and further details can be found under chapter 4 of the guidance document. A civil penalty of up to £4,000 will be imposed for breaches.
The full guidance document can be read herehttps://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents
Should you wish to discuss this matter further, please do not hesitate to contact one of our rental departments.