How Energy Efficient is your property portfolio?


In a bid to improve the energy efficiency of privately rented homes across England and Wales the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 came into force in April 2016.  

This secondary legislation comes under the Energy Act 2011 and essentially ties to the new Green Deal, a financial mechanism created to eliminate the need to pay up front costs when implementing certain energy efficient measures in privately rented homes.

There are many if’s and but’s and possible exemptions with this legislation but the following are key points to be aware of and key dates for implementation. To talk about how your particular property may be affected and what your options are call or email one of our ARLA qualified team members!

From April 2016 landlords of qualifying residential properties will not be able to unreasonably refuse a tenants request for consent to have energy efficient improvements made, where financial support is available

From April 2018 private rented properties must be brought up to a minimum energy efficiency rating of E. This will apply to all new tenancies starting after this date and will make the renting of such premises illegal

From April 2010 no property can continue to be let whether a new tenancy or a current tenancy without a minimum rating of E, to do so will be illegal

These requirements are subject to there being no upfront costs to the landlord, so there must be a green deal or other type scheme that covers the upfront cost. Therefore if the landlord has carried out the maximum work available under such schemes for the property in question and that property still does not meet an E rating they will have fulfilled their responsibility in the eyes of the law

The Golden Rule must be applied - Savings on utility bills must be enough to pay for the works

It is worth noting that the “Green deal” stays on the property and not the tenant, therefore if work is conducted under the scheme landlords must notify any future occupiers that there is a scheme attached to the property. The “financial value” of the deal will display on the utility bills until the deal is concluded