- The Tenant Fees Act 2019
20th March 2019
- The Agriculture Bill 2018
23rd February 2019
- Rural land market commentary summary of the past 12 months and market predictions for 2019.
25th January 2019
- King West Residential Property Estate Agent, East Midlands
22nd January 2019
- Tax Planning Considerations for Farm Diversification
16th December 2018
19 August 2016
Will you be prevented from letting out your residential or commercial property?
After April 2018 it will be unlawful for Landlords in England and Wales to grant a new (or renew) a tenancy on either a residential or commercial property with an Energy Performance Certificate (EPC) rating in band F or G.
The Minimum Energy Efficiency Standards (MEES), which came into force in April 2016, not only mean that new lettings from April 2018 of property with an EPC rating of less than E will be unlawful but from April 2020 for residential and April 2023 for commercial property it will be unlawful to allow an existing tenancy to continue.
Poor energy performance is not limited to old or disused buildings and thus, significant impacts are likely for landlords and tenants. Landlords in particular must be aware of these new rules in order to budget for high compliance costs and therefore protect their property revenue streams.
These regulations aim to improve energy efficiency across England and Wales in a number of ways. These include: improving the efficiency of the most inefficient properties on the spectrum, namely those with a present EPC rating of ‘F’ or ‘G’. Secondly, to work towards the achievement of the UK’s legislative targets for CO2 emissions from all buildings being ‘close to zero’ by 2050.
The implications of these standards are far reaching. Not only will it
be unlawful to let properties that do not meet the regulations, unless an efficiency upgrade is undertaken but the value of the properties will fall if they are unable to generate income.
Landlords and property owners should begin to consider how their properties might be affected immediately, as the consequences of not doing so may prove expensive. This situation is worse for landlords than it was with the demise of the Green Deal Finance Company.
The government funded company was set up to lend money to Green Deal providers who would undertake energy efficiency improvements
in properties. When a saving in energy consumption was made, the difference was paid back to the provider. Now that Green Deal funding has been cut, but the compliance requirements remain, we wait to see what may replace it.
King West are closely following developments and updates on the Minimum Energy Efficiency Standards and are available for advice on legislation, implications and for assessment of cost analysis for properties likely to be affected. We are also able to arrange EPC surveys and to provide a plan to implement any renovations and building improvements, including risk assessments and costing programmes. For managed properties, King West are able to project manage improvement works. King West can then re-let the property. For landlords for whom complying with these new rules is too expensive or difficult, selling the property may be the right solution and King West can undertake valuations and handle the sale of properties.
If you own residential or commercial property that you let out and you don’t know if it complies, or you know it doesn’t comply with these new regulations, contact King West for advice on how to ensure that you aren’t faced with unlettable buildings in a couple of years’ time.
For advise, support and management options for your properties, please email firstname.lastname@example.org in the first instance.