A property lawyer has called on the Government to give out details of its plans to ban energy-inefficient properties from the rental market.
Although plans to make it illegal to market rental properties with an EPC rating of below E are not due to kick in until 2018, Jennifer Chappell says that there could be implications for landlords and their tenants far sooner.
Chappell, associate at Bircham Dyson Bell LLP, said that so far, little information has been provided about how this ‘draconian power’ would work.
She said: “If the Government goes ahead with its plans, it will be illegal to let out commercial and residential premises with either an F or a G energy performance rating from 2018.
“This would prevent new lettings taking place from 2018 if the EPC is not up to scratch, but could also apply to the continuation of existing lettings.
“Landlords granting leases now will need to be concerned about getting energy efficient improvements made to their premises over the next few years to meet the 2018 deadline.
“They will need to ensure they can recover the cost of Green Deal plans which will finance these improvements. If landlords don’t starting thinking about it now, they could find themselves signing up to the Green Deal and the tenant benefiting from reduced energy costs, but the landlord would remain liable for the Green Deal payments.”
The Green Deal is the new form of energy efficient financing introduced under the Energy Act 2011, and this is due to kick in this October.
It means landlords can secure upfront finance for energy efficient improvements to their properties. Repayments would be made by whoever pays the electricity bill and could last for up to 20 years.
Chappell said: “While 2018 is six years away, that isn’t a long time in terms of defining a workable plan for landlords and tenants so they can be compliant with the proposed rules and carry out energy efficient works.
“What will happen to the leases of buildings that currently have an F or G rating which don’t meet the required E rating standards by 2018? Will it be enough for landlord and tenants to show that they signed up to the Green Deal and tried to improve energy efficiency, but were prevented from doing so by other external factors?
“We really need some more guidance from the Government on this – sooner rather than later.”
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Comments
What about the latest Green Deal plans for 2014 to prevent central heating boilers being changed unless the property meets the minimum energy performance requirements. Tenants are going to be really pleased to be told that, when their central heating boiler breaks down in the depths of winter, we cannot do anything until the loft has been lagged, the cavity walls insulated and, presumably, a further EPC survey carried out! Do not these civil servants ever think about the real implications of their ludicrous proposals.
Why does everything always need "a plan"?
There is nothing difficult about any of this at all in terms of Landlords knowing what is needed. They already - presumably!!- have an EPC so all they need to do if if shows an asset rating of F or G is get on complying with the recommendations.
And it isn't just 2018 that Landlords need to be concerned about. The new style EPC clerly flags up Green Deal issues and tenants will be agitating NOW for Landlord action on those. From April 2016 they can COMPEL Landlords to implement such improvements - and that applies to any asset rating, not just F and G, if the recommendation is a Green Deal one.
This is a really critical area for Landlords to seriously address over the next 4 years with their Landlord clients and anyone criticising it needs to rechannel their energies in the direction of implementation instead.
Green Deal and all that flows from it is here to stay, like it or not.
As I constantly say it is never the solution to a problem that is difficult, it is the implementation. In this case presumably the will and finance