Government plans for energy performance ratings

Forthcoming legislation is expected to help tenants stay warm and reduce their energy bills.

The Energy Efficiency (Domestic Private Rented Property) Order 2015 No. 799 aims to improve the energy efficiency of privately rented properties and will mean that:

  1. From April 2016, residential private landlords will not be able to unreasonably refuse consent to a tenant’s request for energy efficiency improvements where Green Deal finance or subsidies are available to pay for them.
  2. From April 2018, private domestic and non-domestic landlords will need to ensure that their properties reach at least an E EPC rating, or have installed those improvements that could be funded using available Green Deal finance or subsidies available to pay for them, before granting a tenancy to new or existing tenants.
  3. These requirements will apply to all private rented properties – including occupied properties – from April 2020 in the domestic sector (and from April 2023 in the non-domestic sector).

The new piece of legislation could help around a million tenants who are currently paying £1,000 more than average on their energy bills.

PAL strongly recommends that landlords start working towards improving their property EPC rating now and don’t wait until the legislation is introduced. The PAL gold standard for accredited properties requires an Energy Performance Certificate (EPC) with a minimum rating of D.