ENERGY PERFORMACE CERTIFICATES (EPC)
BUY TO LET LANDLORDS SHOULD CONSIDER THE IMPLICATIONS
The Energy Act 2011 contains prospective legislation relating to energy efficiency in buildings which may have an impact on the ability of a landlord to let property.
The Energy Act stipulates that by at least April 2018 (if not sooner) it will be unlawful to rent out residential or commercial premises which do not reach a minimum energy efficiency standard. Although the precise regulations have not yet been confirmed at the date this blog was posted the Government has suggested that the lowest acceptable energy rating is likely to be E. Therefore landlords of F and G rated properties will probably be unable to let them out after April 2018 or until they undertake remedial work to improve the energy efficiency of their property (if possible). Once the regulations have been finalised it will become apparent if any E rated buildings may also be prevented from being let.
Accordingly landlords should carefully consider the EPC of any property they are purchasing/buying to ascertain the energy efficiency rating is sufficient and if not to also confirm if there is any scope for improvement in the energy efficiency of the property if remedial works can be undertaken. Furthermore landlords may wish to consider obtaining an EPC for any property they let that has not been surveyed for an Energy Performance Certificate and undertake any remedial works to improve the EPC rating if necessary.
If the EPC reveals that the property is F or G rated without remedial works being undertaken or there is little or no scope for necessary remedial works landlords should evaluate the affect this may have on the investment value of a property they hold or wish to buy and possibly consider renegotiating any purchase price to reflect the costs of any remedial works required to be able to let the property.
Andrew Veitch is an experienced and highly rated conveyancer and property lawyer as well as a landlord and tenant solicitor based in Marylebone London W1 and if you wish to contact him email@example.com Tel:020 7935 1095 he can provide you with advice on the conveyancing process and the implications it has on buy to let properties and landlord and tenant issues
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