Deadline To Improve Energy Ratings By 2018 For UK Landlords

Plans to bring in minimum energy efficient from 2018 have been approved by The British Property Federation (BFP), set to be introduced to the private rented sector.

However, they have also warned of the considerable consequences that could arise if capacity in the energy efficiency sector does not meet the demand.  

Changes to the new Energy Bill have been revealed by the UK Energy and Climate Secretary, Chris Huhne, the affect of which include that from April 2016 UK landlords must fulfil all acceptable requests to improve their properties made by both their tenants and local authorities.

From April 2018 it will be made unlawful to rent out business premise or residential property which falls below the ‘E’ energy efficiency rating. Under these new standards, over 682,000 properties will require improving.

Huhne stated that The Government has made it clear that renting out dangerously cold and draughty homes is unacceptable. Landlords will have to improve their properties or face prosecution:

‘We welcome the recognition that there simply isn't the capacity in the energy efficiency supply sector to expect change overnight and hence why the Minister has plumped for 2018.’

The director of policy at the British Property Federation, Ian Fletcher, said ‘This seems reasonable for the private rented sector, but if the capacity does not come on stream or the Green Deal fails there will be significant consequences in terms of reducing housing supply and potentially poor works if there is a last minute rush,’

‘Previous drafts of the Energy Bill were proposing a more cautious approach which relied on a review in 2013/14 to check progress, and the implications if there was a lack of capacity, before considering how any legislative sticks would be applied. If that is dispensed with, the Secretary of State is obviously pursuing a riskier strategy,’

‘It is important that landlords start to consider whether they will be caught and have their plans ready for when the Green Deal goes live next year. The Government has binding climate change commitments and landlords are party to those. There are opportunities, however, as well as threats in improving energy efficiency and landlords who start thinking about and acting on the issues will be best placed to handle both,’ he explained.

The operations manager of the Association of Residential Letting Agents, Ian Potter, explained that allowing properties given an F or G on the energy efficiency rating to remain on the market until 2018 was a decision based upon practicality, as these make up around 17% of properties currently on the market. 
 
‘This equates to around 500,000 properties in the PRS if landlords do not respond to the Government's proposals. However, we remain concerned about the lack of detail on greening rental stock.  So far, there is no clarity on how energy improvements will be assessed or enforced or, importantly, how this assessment will be funded,’ he continued

‘ARLA would like to see the Energy Performance Certificate Register made publicly available so that those properties that do not meet energy efficiency standards can be identified. We believe that the Bill in its current form risks disincentivising the lettings market and discouraging landlords from investing in the PRS, at exactly the time when the Government should be focused on keeping properties in circulation.’

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