New Energy Efficiency Rules on Rental Properties – What Landlords Need to Know

Properties that are energy efficient are more comfortable to live in and more affordable to run. During the winter months, energy-efficient homes require less fuel to keep them warm. In the summer, properties that are well insulated will remain cool and welcoming, even when the sun is burning bright outside.

To help ensure everyone is able to live in homes that are kind on the environment, the Government has been slowly introducing regulations to help improve the efficiency of rental properties.

These new energy-efficiency rules will affect all residential landlords. Whether you have one property or a whole portfolio of rental homes, you need to know exactly how these changes will impact on you.

Minimum energy efficiency standards

Back in 2015, the Government introduced new rules relating to the minimum energy efficiency of rental properties. These rules stated that rented homes had to have an energy efficiency rating of E or above.

In April 2018, a new law came into force which stated that homes with an energy efficiency rating lower than E could no longer be rented out unless they came under a few specific exemptions.

This year, the Government has taken things one step further, with landlords now required to invest a minimum amount of cash in relevant home improvements. Considering the laws are due to tighten again in April 2020, any landlords with energy inefficient homes need to act now if they’re going to protect their income and their tenants.

What’s changed?  

As @PropIndEye says, “The new Regulations focus on the minimum level of energy efficiency – band E – required to let domestic property, amending 2015 rules.”

Since 1st April this year, landlords will have to invest a minimum amount of cash in their properties in order to improve their energy efficiency. This money can be acquired from third-party funding like the Green Deal or other eco-friendly schemes.

If third-party funding isn’t available, landlords are required to invest the cash themselves. However, they are only required to spend £3,500, including VAT, on improvements. If the property’s energy rating still falls below E even after relevant improvements have been made, landlords can apply for a special exemption for their property.

How to make your property more energy efficient

From April 2020, all tenanted properties, even those already rented out, will need an energy rating of E or above. This means it’s essential that you act now to ensure your property meets the minimum standards.

One of the best ways to improve the efficiency of your home is to replace your old windows and doors with energy efficient new ones. Replacing old windows with modern UPVC can really help to improve an EPC rating, with new windows helping to prevent draughts, retain heat, and make properties a lot more efficient.

Find out more about making your rental property energy efficient, and learn about our extensive range of high quality windows and doors, by exploring our site today.