Minimum E-rated EPCs for rental properties in future

Landlords across England and Wales will be banned from letting out very draughty homes from 2018 in a bid to cut energy bills and carbon emissions.

New regulations are set to cut bills of tenants who spend an average of £1,265 on heating, exacerbated by poorly insulated homes.

The government yesterday presented regulations to parliament which will oblige landlords to upgrade the energy efficiency of those to-let properties currently rated F and G to a minimum of E by 1 April 2018 - or face being unable to let them until they improve the rating.

The government claims that almost 10 per cent of England and Wales' 4.2m privately rented homes currently fall below the E rating.

From April 1 next year - so only 14 months from now - tenants living in F- and G-rated homes will be able to request improvements such as more insulation and over the following two years landlords will be legally bound to bring homes up to an E-rating.

This is a very big measure. Effectively, we're saying, if you do not improve your property up to the minimum of EPC [Energy Performance Certificate] E rating by three years' time, you will not be able to let out that property. Which is quite a big stick, and it's about time too energy secretary Ed Davey has told The Guardian.

If a tenant requests a more efficient home and a landlord fails to comply, the landlord could ultimately be forced to pay a penalty notice. Landlords will be able to let out F- and G-rated properties beyond April 1 2018 for the remainder of the in-place tenancy but will not be able to renew a contract or let the property to someone else until it is brought up to an E rating.