On the 1st of April 2018 a new legislation came into force to ensure all new, and renewed, private tenancies needed to have an Energy Performance Certificate (EPC) rating of E or above, otherwise it would be unlawful to rent the property.
However, what Landlord’s may not be aware of is that, from 1st April 2020, this policy will be extended to also cover current tenancies, which means that under the new regulations, homes with an EPC score of F or G will be classed as un-rentable – which means the landlord could be liable for a fine of £5,000.
Act now to upgrade your property before the deadline!
Some Landlords may be familiar with the loophole from 2018 for rental properties with an F & G EPC rating on new tenancies, where they did not need to upgrade the property for five years if it cost them money. However, back in April 2019, this exemption to improve rental properties was removed – so these Landlords are included in these new rules too.
The requirement to upgrade the property is subject to a spending cap of £3,500 (including VAT) for each rental property, however this means Landlords will need to carry out the most appropriate measures which can be installed up to the £3,500.
In relation to this, the draft of The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 has been recently laid in Parliament.
From the draft, there will be a requirement on private landlords to ensure that an electrical safety check is done before the commencement of a new tenancy from April 2020 (and for every existing tenancy, by 1 April 2021).
Following this, the electrical safety checks are to be carried out within 5 years thereafter.
There is an obligation on the private landlord to “ensure that the electrical safety standards are met during any period when the residential premises are occupied under a specified tenancy;”.
The check must result in a report giving the results and the date of the next inspection, and this must be supplied to the tenant within 28 days. If the Local Authority, who provide the Enforcement, request a copy it must be provided within 7 days. Copies must also be provided to prospective tenants on request, and to new tenants before taking occupation.
Any remedial works must be done within 28 days, or whatever shorter period specified in the report (with written confirmation of work done).
Enforcement by the Local Authority, can order remedial action or urgent remedial action. The penalty for breach of such an order is a ‘civil penalty’ (as per Housing Act 2004 and Housing and Planning Act 2016) of up to £30,000.
But this ‘up to £30,000 penalty’ also applies to any duty under Reg 3. So the Local Authority can levy a penalty on the landlord for failing to provide the tenant or prospective tenant with an electrical safety certificate at the required times.
My advice: Get this done before there is a mad rush closer to the deadline.
If you're a self-handling landlord with Edmonton, the Enfield Borough and surrounding areas, then free to give us a call to discuss your property and the latest legislations. We can carry out a full property check to ensure you are compliant.
Until next time
Thomas
Comments