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Landlords & Efficency Targets

Government changes to the Energy Bill have included new laws for a minimum energy efficiency standard for homes rented from a landlord from 2018.

As from 1st April 2018 there will be a requirement for any properties rented out in the private sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC), in all new lets and renewals of tenancies. From 1st April 2020 this will be extended to all existing tenancies. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption.

How efficent is your property?

Enter your postcode below to download your free Energy Performance Certificate

What is available for Landlords?

The grants are not loans, there is nothing to pay back. Qualifying funding applicants can have their heating systems upgraded if deemed to be inefficient. Bright Energy will arrange a free survey of the properties where funding can be applied. From a new boiler or high efficiency storage heaters to wall, loft or room in roof insulation, we will help you make your homes more energy efficient.

The following measures are available under the ECO scheme:

Suppliers Obligations
towards efficient energy

  • What is the funding available?

    The grant scheme is called ECO (Energy Company Obligation) funding. It is a scheme that is available to people in privately owned homes throughout the UK. The occupiers must be in receipts of certain benefits in most examples of funding however, there are exceptions.

  • What is the scheme for?

    It is aimed at protecting the vulnerable so homes that are in receipt of Child Tax credits and Pension credit are automatic qualifying benefits. The scheme also recognises Working Tax Credit, Universal Credit and ESA. The overall objective is to improve home efficiency and reduce the cost of heating the home.

  • What are the energy suppliers doing?

    Under the scheme, larger energy suppliers have to deliver energy efficient measures to homes in Great Britain. Suppliers are given targets based on their share of the domestic gas and electricity market, focusing on the installation and heating measures.

Preparing for change

An Energy Performance Certificate (EPC) is a record of the energy efficiency rating of a building. Assessed on a scale from A (most efficient) to G (least efficient). It also recommends improvements that could upgrade this rating, such as installing wall insulation, replacing the boiler or installing double-glazed windows.

The first EPC's carried out in 2008 will be due for renewal on new lettings in 2018. As software used for energy assessment has increased in its accuracy, the regulations have become more rigorous

9 million properties originally banded at 'D' or 'E' are at risk of falling to bands 'F' or 'G' on a new inspection. These properties will then be prohibited from letting until alteration to improve the rating are made.

What is to be done?

Proactively, some landlords are reviewing their property portfolios and having energy assessments carried out and then implementing the recommended works to improve the efficiency and the ratings of the properties. Landlords cannot try to impose the liability on tenants under the general provisions already standard in leases and recover costs via a service charge (justified as improvements required under legislation) as the Regulations do not impose any positive obligations on the landlord to improve the energy efficiency of buildings; the Regulations just prohibit certain properties being let.

Also, landlords are inserting covenants in their new leases imposing obligations on the tenant to not do anything to diminish the EPC ratings of the properties.

Supplier Obligations Towards Efficient Energy

ECO is made up of 3 parts all targeted at helping Landlords, Homeowners and Tennats save energy and money. These are:

Carbon Emissions Reduction Obligation (CERO)

Suppliers must promote measures which improve the ability of low income and vulnerable households to heat their homes. This includes actions that results in heating savings, such as the replacement or repair of a boiler.

Home Heating Cost Reduction Obligation (HHCRO)

Suppliers must promote measures which improve the ability of low income and vulnerable households to heat their homes. This includes actions that results in heating savings, such as the replacement or repair of a boiler.

Carbon Saving Community Obligation (CSCO)

Suppliers must promote insulation measures to district heating systems in areas of low income. The target has a sub-obligation which states that at least 15% of a suppliers CSCO must be achieved by promoting measures to low income and vulnerable households in rural and deprived rural areas.

This scheme is regulated by OFGEM

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