The Energy Performance Certificate, or EPC as it is commonly known has been a stumbling block for many a landlord since its introduction in 2007 via the infamous Home Information Packs. Since then the regulations relating to EPC’s have tightened further, making them mandatory for the private rented sector (PRS) and now landlords can’t serve s.21 notices if their tenants have not been properly served with a copy of their EPC.

The Government are taking EPC’s even further with the Minimum Efficiency Standards for the PRS set to be phased in from 2018, and by 2020 landlords will not be allowed to rent out properties with an EPC rating of G or less. Exemptions will apply in cases where landlords have endeavoured to improve the EPC rating by completing improvement works but the property cannot meet the required standard.

With all the changes afoot with Brexit, the scrapping of the Department for Energy and Climate Change and a new Prime Minister in Number 10 have EPC’s finally had their day?

In short…No!

The PRS is renowned for properties with low energy efficiency ratings when compared with the social or owner-occupier sectors, in part due to the fact that 30% of PRS properties were developed pre-war. However, the energy efficiency of properties within the PRS has been gradually increasing over the past 10 years.

This improvement is unlikely to continue, even with the introduction of the minimum standards, as although these will stop landlords from letting out inefficient properties, there is an exemption stating that landlords will not need to cover any up-front costs which is farcical considering that the government have scrapped the Green Deal.

In reality, the government has 2 options:

1. Delay the introduction of the minimum standards until a new Green Deal has been formulated and introduced.

1. Remove or relax the no up-front costs to the landlord exemption, which will not be a popular choice.

The National Landlords Association and DASH prefer option 1 as it places less of a burden on the landlord, and the NLA have impressed this upon the government…let’s hope they take heed!

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