Landlords: Ready For 2018 EPC Regulation Changes?
There have been many regulation changes for landlords to keep up with in recent times. Anyone who was hoping for things to be slightly easier or more straightforward will be disappointed to learn that 2018 looks like being another challenging year. This is because there are notable changes coming into effect in April of 2018, and these changes relate to the Energy Performance Certificate, or EPC. Landlords will have to ensure that their property complies with the Minimum Energy Efficiency Standard regulations, or the MEES.
As of April 2018, any landlord looking to offer a new let or renew a let will need to ensure that their property holds an EPC rating of at least an E. Any landlord that fails to comply with this regulation could face a fine of up to £5,000. In April of 2020, the law changes so that all rental accommodation will be required to hold an EPC rating of E.
There should be benefits for landlords and tenants
Overall, there is positivity surrounding these changes because they are being undertaken in an attempt to improve standards within the lettings sector. Ultimately, landlords and tenants will benefit but of course, many people dislike change, which means that there is a level of uncertainty at the moment.
These changes should be of benefit to tenants. This can be found in studies which suggest that the average cost of heating a property with an EPC rating of G comes in at £2,680 while the average cost of an EPC rating with an E rating is £1,710. This means a saving of more than £1,000 can be made by upgrading a property. This is great news for tenants but landlords can also benefit from the fact that they will be improving the standard of their home, and hopefully the value of their home. There is also the fact that if a tenant is happy, they are likely to stay in the property for longer, which can minimise the likelihood of void periods.
There are exemptions available for some properties
Some landlords will be interested to note that a house which holds an EPC rating of less than an E can be suitable for lets if one of the following exemptions apply:
· All possible improvements have been carried out but the home hasn’t reached an EPC rating of E
· Permission is required from an external or third party to carry out work and this request has been denied
· If it is deemed that any improvement work would lower the property by at least 5%, with this study being carried out by an independent party
· If the work will leave the landlord out of pocket
As can be seen with the final exemption, there is no desire to see landlords punished financially in this matter. There is assistance available in the form of various grants and landlords should seek guidance on what help they can claim in carrying out repairs.
There have been many changes to the regulations landlords face of late, and it is easy to see why some landlords struggle to keep up to date. This is why it makes sense to get a helping hand and any landlord looking for assistance should come and speak to Peter Anthony.Stockport Business Hub: A Reason To Invest In Prope