The Domestic Private Rented Property Minimum Standard

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New Government regulations for energy efficiency are set to come into force on 1 April and it could have a massive impact on landlords.

If you’re concerned about your property’s energy efficiency and want to continue to rent your building then read on now.

What is the Domestic Private Rented Property Minimum Standard?

The Government is introducing new regulations that come into effect on 1 April 2018 that will impact the domestic private rented property market.

Similar to Boiler Plus, which affects domestic properties, the regulations aim to establish a minimum standard for domestic privately rented properties.

What does the Domestic Private Rented Property Minimum Standard aim to do?

The regulations will help tenants enjoy a better living environment, improve health and lower energy bills.

A third of all fuel-poor households in England live in private rented accommodation.

The aim is to improve the energy efficiency of properties in England and Wales that have an Energy Performance Certificate (EPC) band F or G rating.

The minimum EPC standard from 1 April 2018 will be band E.

The average annual energy cost for a band G property is £2,860, while a band E comes in at £1,710. This means that bills could be cut by £1,150 a year, which will help those living in fuel poverty, especially the vulnerable.

The regulations will also help:

  • Improve the conditions of properties and help reduce maintenance costs
  • Smooth seasonal peaks in energy demand and increase energy security
  • Reduce greenhouse gas emissions at a relatively low cost

What happens when it comes into effect?

From 1 April 2018 landlords may not grant a tenancy to new or existing tenants in any property that has an EPC rating of band F or G.

From 1 April 2020 landlords must not continue to let a property, which is already let if it has an EPC rating of band F or G.

In order to carry on letting the property landlords will have to carry out improvements.

The local authority can also impose a financial penalty on landlords who fail to comply.

What are the benefits for landlords?

As well as being able to continue to let out your property, landlords associations have recorded the following potential benefits.

  • Reduce void periods – A property with an EPC band B rating has 31% less void time than a band E or F property)
  • Reduce rent arrears – Cold homes have an average of 2 more weeks rent arrears on average than homes with higher efficiency
  • Reduce costs of tackling rent arrears and voids
  • Make properties more attractive and easier to let
  • Reduce long-term property maintenance
  • Potential to increase your property’s value

What can be done to improve your property’s energy efficiency?

As long as the minimum E rating is obtained, it is left to the landlord to choose which works need to be carried out from the list of eligible improvements below.

  • Air source heat pumps
  • Thermostat boilers
  • Thermostat room heaters
  • Cavity wall insulation
  • Solid wall insulation (internal or external)
  • Cylinder thermostats
  • Draught proofing
  • Duct insulation
  • Hot water showers/systems (efficient)
  • Hot water taps (efficient)
  • External wall insulation systems
  • Fan assisted replacement storage heaters
  • Flue gas recovery devices
  • Ground source heat pumps
  • Heating controls (for wet central heating systems and warm air systems)
  • Heating ventilation and air conditioning controls
  • High performance external doors
  • Hot water controls (including timers and temperature control)
  • Hot water cylinder insulation
  • Internal wall insulation (or external walls)
  • Lighting systems fittings and controls (including roof lights, lamps and luminaires)
  • Loft or rafter insulation (including loft hatch insulation)
  • Mechanical ventilation with heat recovery
  • Micro combined heating power
  • Micro wind generation
  • Pipework insulation
  • Photovoltaics
  • Chillers
  • Gas fired condensing boilers
  • Replacement glazing
  • Oil fired condensing boilers
  • Warm air units
  • Radian heating
  • Roof insulation
  • Warming roof insulation
  • Ceiling improvements (including duct ceiling)
  • Secondary glazing
  • Solar water heating
  • Solar blind, shutters and shading devices
  • Transpired solar collectors
  • Under floor heating
  • Under floor insulation
  • Variable speed driers for fans and pumps
  • Waste water heat recovery devices attached to showers
  • Water source heat pumps

What’s the next step?

If you’re unsure about your property’s energy rating then give us a call on 0800 0749132 and we can arrange for a survey to be carried out.

If improvements are needed then our expert surveyors can discuss the best system for your property to help you achieve band E.