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New energy performance regulations for residential properties – 2018

New energy performance regulations for residential properties – 2018

NEWS Kevin Parson 29th March 2018

New energy performance regulations for residential properties – 2018


Are you a residential landlord?  Do you rent out residential properties?  Are you considering letting out a property?  Are you ready for the new EPC regulations for residential lets?


From 1st April 2018, any property let in the private rented sector will need to have a minimum Energy Performance Certificate (EPC) rating of E.

The government have brought this new legislation in to help reduce costs for tenants and the wider economy, and also to lower our greenhouse gas emissions and help reduce our carbon footprint.  According to the government, any property with an EPC rating of F or G is basically wasting energy, so not only is it causing large energy bills for the tenants, it’s also inefficient and damaging to our environment.

The government carried out a survey and found that the average annual cost of energy varies hugely between band G and band E (the new minimum).   The average yearly cost to tenants in a band G home is £2,860 compared to a much cheaper and more economical £1,710 for band E.  This could mean a saving of £1,150 every year for tenants which is a life-changing amount for some.  This should be equally good news for landlords as they should find less cases of late rent payments because the tenants have more disposable income.


So, what does all this mean for you, the landlord?

The regulations will become effective from 1st April 2018 for new lets and any renewals of tenancies, and on 1st April 2020 for any existing tenancies.  From those dates onwards, a landlord will be breaking the law if they breach the minimum rating of E (unless they have an applicable exemption).

Any rental property that is found to be substandard will need to be improved and updated by the landlord, otherwise they could face a fine of up to £4,000.


Reasons for landlords being granted an exemption are as follows:

·       Where the landlord has carried out all the possible cost-effective improvements (those that have been installed with a Green Deal) to the property, yet the energy rating still remains below E.


·       If consent from a third party, for example, a sitting tenant, lender or freeholder is denied, or they consented but with unreasonable conditions.



·       If the work that has been recommended would reduce the market value of the property by more than 5% (this must be proven and evidenced by a qualified independent surveyor).

Exemptions last for up to 5 years and must be registered on a central register.

Most of you will have already taken the steps to assure your property is within the A – E criteria, and once you have done that, it’s important that you get your EPC renewed to show the changes.

We believe there is quite a high likelihood that the government will raise the minimum energy standards again in the future, so if you like to plan ahead it may be a good idea to start implementing any other changes now, rather than simply doing the bare minimum to achieve your E rating.

The Green Deal ‘Pay as you Save’ finance will allow landlords to take out loans to pay for the energy efficiency improvements in their homes and rental properties, with any repayments being made on a PAYS basis – in other words, as the house begins to save energy, the difference between the old energy bills and the new ones is used to pay off the load.


We hope this mini-guide has helped you to understand the new rules beginning next month.

This guide is purely the tip of the iceberg, and we recommend that if you want full information on the new energy rules, visit the following websites: -


How have the new energy regulations affected you?  Have you found it easy to improve your EPC rating or has it been difficult?  Do you think it’s a good idea?  What are your thoughts on EPC’s?  We would love to hear from you………

Can we help you with any queries about this topic, or indeed any other property-related topic?  We are always happy to chat…….

Send us an email at or give us a call on 07919 416831

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