Under the Energy Efficiency Regulations 2015 the minimum level of energy efficiency for private rented dwellings in England and Wales is EPC band E.
Since 1st April 2018 landlords may not grant a new tenancy or renew an existing tenancy for a property rated EPC F or G(unless an exemption applies). The landlord must improve the rating to minimum of EPC E (or register an exemption if one applies) before letting.
From 1st April 2020, the minimum level of energy efficiency will apply to all private rented properties covered by the Regulations, even if there has been no change in tenancy. So, from 1st April 2020, landlords should not continue to let properties with an EPC rating of F or G, even to an existing tenant (unless an exemption applies).
If a landlord of an EPC F or G rated home cannot obtain third-party funding to meet their energy efficiency improvement costs, they will need to self-fund any improvements necessary to comply with the Regulations.
A further key change is the introduction of a landlord financial contribution element capped at £3,500 for an F or G rated property, inclusive of VAT. Where an EPC F or G rated property cannot be improved to EPC band E or above for £3,500 or less (inc VAT) then an exemption can be registered on the PRS Exemption Register.