New energy efficiency rules for properties in the private rented sector in England and Wales are now in force (as from 1st April 2019) with industry organisations urging those letting property to make sure they are compliant.

There is concern that agents and landlords may be unaware that the Statutory Instrument to bring in the new energy efficiency regulations went through in the middle of March setting out the new requirements to be in place from 1 April.

An amendment made has introduced a new self-funding element for residential landlords, which takes effect if landlords are unable to access third party funding to improve any rental properties with F or G ratings. This element is capped at £3,500, including VAT, per property. It means that a landlord without funding must spend up to this amount to improve the property to a minimum E rating.

Many landlords will already be compliant as, since 1 April 2018, landlords have not been permitted to let a residential property with an EPC (Energy Performance Certificate) rating below an E on a new tenancy (including an extension or renewal), unless they registered an exemption on the PRS Exemptions Register.

Tenancies in existence before 1 April 2018 with an EPC rating of F or G were given an extra two years to make appropriate improvements. However, from 1 April 2020, these properties will also fall under the scope of the 2015 Regulations and all existing tenancies which require an EPC will need to have a minimum E rating.