This weekend marks one year to go before the introduction of new Minimum Energy Efficiency Standards - which are expected to have a significant impact on the rental sector.
The measures will require properties to achieve a minimum ‘E’ rating and will apply to new leases and renewals from April 2018.
For 12 months now, tenants living in private rental sector property with F and G rated homes have been able to request improvements, such as more insulation. The landlord has been legally bound to bring the property up to at least an E rating, although not if it requires upfront costs.
The regulations now mean that properties with an Energy Performance Certificate rating of F or G are classified as ‘sub-standard’. From April 1 2018, exactly a year from now, agents and landlords must not grant a lease on a sub-standard property.
Furthermore, from April 1 2020, residential landlords must not continue to let out sub-standard property. An estimated 330,000 buy to lets - thought mostly to be Victorian and Edwardian properties - are likely to be affected.
One of many guides introduced for the lettings sector - this one by Arbnco - says some properties not complying could see their capital value reduced by as much as 10 per cent.
“All landlords will potentially be affected by the MEES regulations, irrespective of the size and nature of portfolios and early action is advised to mitigate the impact. Landlords and ... investors need to act now to alleviate the risks posed by MEES legislation ahead of the April 2018 start date” says Simon West, founder of Arbnco.