Government reveals how landlords can avoid minimum energy efficiency measures

The Government has unveiled guidance on how landlords can get exemptions to new rules on minimum energy efficiency on rental properties.

Since April, any new tenancies established must have a minimum energy performance rating of E, with the measure being extended to existing lets from April 2020.

But the Government has now outlined several exemptions where properties cannot be improved to meet the minimum standard of EPC band E.

A landlord can register an exemption if they have been unable to access relevant ‘no cost’ funding to fully cover the cost of installing a recommended improvement either from a Green Deal scheme, energy supplier or local authority.

The requirement to meet the minimum level of energy efficiency also does not apply where a landlord has made all the ‘relevant energy efficiency improvements’ – anything recommended by a surveyor or Green Deal provider such as insulation and replacement glazing – that can be made or there are none that can be made, and the property still remains below EPC E.

There is also a special provision for circumstances in which cavity wall insulation, external wall insulation systems, and internal wall insulation systems should not be installed such as where it would have a negative impact on the fabric or structure of the property.

An exemption from meeting the minimum standard will also apply where the landlord has obtained a report from an independent surveyor who is on the RICS register of valuers advising that the installation of specific energy efficiency measures would reduce the market value of the property, or the building it forms part of, by more than 5%.

An exemption can also be registered where consent was needed and refused for an energy efficiency measure, such as getting local authority or mortgage lender permission.

In all these situations, a landlord will need to upload evidence from relevant experts.

Once registered, the exemption will last for five years; after which the landlord must try again to improve the EPC rating.

If this cannot be achieved, then a further exemption may be registered.

The Exemptions Register is available for the public to search, and landlords can self-certify their own exemption, which will be monitored by local authorities.

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