Why would I want to make my property more energy efficient?
A more energy efficient property means cheaper bills and a reduction in carbon footprint. More and more tenants are concerned with the energy bills they are likely to face when they lease a property. The more energy efficient your property is, the more attractive it will become to prospective tenants.
The Current Legislation
Any residential property that has an EPC rating lower than an ‘E’ cannot be rented out to new tenants or renew any existing tenancy contracts until at least an ‘E’ rating is obtained.
If a local authority confirms that a property is (or has been) let in breach of the Regulations, they may serve a financial penalty up to 18 months after the breach and/or publish details of the breach for at least 12 months.
There are some exemptions that which will enable a landlord to let, or continue to let, a substandard property:
- High-Cost Exemption
- All the “relevant energy efficiency improvements” for the property have been made
- Certain type of wall Insulation exemption
- Third Party Consent exemption
- New Landlord
- Property decrease by 5%
Landlords who currently think their properties are compliant may find that upon renewal of the Energy Performance Certificate for their buildings that they are no longer compliant and therefore unable to rent out their properties.
The Proposed Changes
Currently, the proposal is in open consultation, so everyone can have a chance to have a say. But it may be best to start planning as if this is going to happen as energy efficiency continues to be a hot topic.
At the moment, landlords must have an EPC in place. Many prospective tenants will be looking for an energy-efficient property for a lower carbon footprint and reduced utility bills. As a result, sharing an EPC is vital for tenants when they’re looking for a property. At present, landlords must ensure their property has a minimum rating of E.
From 1st April 2025, all new tenancies in England and Wales will need to have an EPC rating of C or higher. For existing tenancies, landlords must ensure their property is a C or above by 1st April 2028.
The High Cost Exemption will increase from £3,500 including VAT to £10,000 including VAT and this would apply to every recommendation.
How can Assessment Hive help?
Assessment Hive can help you become more energy efficient and MEES compliant in several ways depending on your needs. We can have as little or as much involvement as you wish. Whatever the circumstance, it is best to start preparing now to avoid any nasty surprises that may occur later.
We can assess your current energy efficiency and energy performance risk across your portfolio and for individual assets.
When the assessment(s) have been done, we will work with you to find the most practical and cost-effective method to improve the rating. We can create a bespoke risk management plan (“Energy Efficiency Plan”) for your buildings, a fully costed investment grade proposal and where applicable apply for an exemption.
On completion of any works, we will update the energy performance certificate and provide you all the completion certificates for your EPC File. We have several packages to suit your needs and budget, please feel free to enquire with one of our assessors.