New research from our friends at 5 Star rated Landlord Insurance provider Just Landlords has revealed a number of shocking misconceptions around new EPC laws.
The study also exposes how few landlords and tenants understand how Energy Performance Certificate (EPC) ratings can impact a property’s environmental footprint and help occupiers save money.
The findings come ahead of the introduction of the Government’s new Minimum Energy Efficiency Standards (MEES), which will apply to all new tenancies and renewals from 1st April 2018. They will concern all rental properties from 1st April 2020.
The poll, of over 400 landlords and tenants in the UK, found that 48% of those asked did not know that upgrading their insulation would improve their property’s EPC rating.
An energy efficient property will be more appealing to prospective tenants
Of those surveyed, less than two thirds (58%) knew that the condition of the windows had an effect on an EPC rating, while 80% didn’t know that an EPC rating could be an indicator of how environmentally friendly a property is. 30% did not know that an upgraded boiler would improve their rating.
Once the new MEES are in effect, private rental properties must have an EPC rating of E or above. Properties with an F or G rating will be unlawful. Landlords found granting a new lease on a property with these ratings from 1st April could face a penalty of up to £4,000.
David Cox, Chief Executive, ARLA Propertymark has commented on this upcoming deadline for landlords: “While the number of properties which are EPC rated F or G has fallen dramatically from 700,000 in 2012, to 300,000 today, many landlords are yet to prepare their properties for the new laws.
“Sunday’s deadline means they’ll either face fines of up to £4,000, or lose money on empty properties which cannot be let until they meet the standards. Either way, it’s another kick in the teeth for hard working landlords, and tenants looking to find affordable accommodation.”
Rose Jinks, our writer and spokesperson for Just Landlords, says: “It’s not only essential that landlords understand all new legislation in order to avoid hefty fines, but also that their properties are safe and comfortable for their tenants. This law is designed to improve the energy efficiency of rental properties, which could vastly reduce bills for tenants.
“In addition, landlords will be pleased to know that an energy efficient property will be more appealing to prospective tenants when it comes to marketing the property, so it’s a win-win. Now is the time to start looking at the changes your property needs to comply with the new rules.”