The recent proposals from the Department for Business, Energy & Industrial Strategy on improving rented homes’ energy performance and although it some way off from being introduced, it will undoubtedly have a major impact on landlords.

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Paul Offley, Compliance Officer at a national network of independent estate agents, advises that the new proposals will not be introduced until five years from now. He urges all agents to make their voices known to hopefully affect or offer guidance to help shape the government’s decision regarding the potential changes.

Offley also explained that with the existing PRS regulations, the minimum EPC requirement for any rented residence is an EPC Band E which was introduced April 1st 2018 for any properties which were newly let since that date; since April 1st this year the requirement is now mandatory for all rented homes irrespective of any tenancy start date.

Offley states: “The regulation is applicable to any property that is let under an assured tenancy, a regulated tenancy or a domestic agricultural tenancy, as well as any other property that is required to have an EPC. If a property has been marketed for sale or let, or has been modified in the past 10 years, then the likelihood is that the property will require an EPC unless the landlord has applied for an exemption."

He notes that there are various exemptions that apply, such as the ‘all relevant improvements made’ exemption, which applies when a landlord has made improvements to the property up to a cost cap of £3,500 including VAT, and the property still does not meet the minimum standards. Several others apply, depending on the property and the landlord’s unique circumstances, such as having only recently become a landlord.

After only six months since landlords had to ensure that their properties achieved an EPC band E certificate they now have to face new regulations as outlined in the proposals.

“As you can imagine there are a number of properties where this will impact significantly on landlords in some areas where the cost of energy improvements could be high. Landlords may also be concerned at the increased costs they may face, especially as some may have issues with rent arrears from their tenants who have been impacted by coronavirus – but ‘don’t panic’ is my clear message."

He concludes: "At this stage, the Government has announced its intention and issued a consultation process, everyone involved with the PRS has until the end of December 2020 to have their say and submit a response to the consultation; so don’t suffer in silence this is your opportunity to have your say on this topic.”