Don’t sleepwalk into costly repair bills.
If you have an interest in property, you will no doubt be aware of the requirements under The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
In short, they require all domestically rented properties to have an Environmental Performance Certificate rating of E or above before a property can be marketed and let.
Perhaps more concerning is the requirement for all existing properties to have an EPC rating of E by 2020, regardless of whether a new tenancy is being entered into or not.
There has been considerable coverage in the press and from property industry bodies warning landlords of the regulations and requirement to comply. However, a number of landlords may sleepwalk into potentially costly repair bills by not being fully aware of the exemptions available to them.
The Government has recently consulted on the matter, and is seeking to implement a number of changes to the exemptions which are expected to come into force in early 2019.
The main point to take from this is that the Government is seeking to scrap the "no costs" exemption which states that where the landlord cannot seek 100 per cent grant funding for remedial works required, he is exempt from the regulations. This is as a result of the removal of the "Green Deal," which until recently provided grant funding for efficiency improvements.
Instead the landlord will be liable for a contribution to the work capped at £3,500. However, further exemptions are still available where:
- A property cannot be brought up to standard for £3,500
- All improvements have been made and the property is still sub standard
- The required works would reduce the property’s value by five per cent (RICS valuer required)
- The recommendation is for wall insulation which will impact the structure of the building (chartered engineer required).
- Buildings within a protected area or that are protected because of there architectural merit are also exempt assuming the remedial works would impact its architectural merit.
With Shropshire benefiting from a generally historic, rural housing stock, many properties will fall foul of the regulations.
If you have properties that fall short of the requirements, please contact us. We would be happy to explore the exemptions available to you.
Aidan Greenway, MRICS, Madeleys chartered surveyors.
