Recently, new legislation has been passed that will make it easier for tenants to rent more energy efficient properties.
Called the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, the regulation introduces measures to improve the energy efficiency of rented properties in England and Wales. Both domestic and non-domestic private rented property is included in this legislation.
The regulations are the first instruments to be made using the powers conferred by the Energy Act 2011. The Act places a statutory duty on the Secretary of State to make regulations implementing the tenants’ energy efficiency improvements provisions by 1st April 2016.
The property industry will need to review the legislation carefully and take the regulations into account now, with start and enforcement dates beginning in the autumn of next year. The dates are phased in stages.
What are the regulations?
The new regulation states that from 1 October 2016, all private rented properties must have a minimum energy performance certificate of band ‘E’. Landlords will not be able to take on new tenancies after this date without making energy improvements. Then, after 1 October 2018, for any domestic property below an E rating, these regulations will apply to all existing tenancies. This date is 1 October 2023 for non-domestic properties.
By making the regulations clear well ahead of their application date, and by phasing in requirements over time, all participants will have time to take voluntary action, reduce their costs of complying, and decrease the need for enforcement of the legislation.
