The Energy Act 2011 means that from 2016 in Scotland and 2018 in England & Wales, it will be unlawful to market or rent out buildings which are not energy efficient. This is defined as building with an Energy Performance Certificate (EPC) rating of less than ‘E’.
What this means for landlords and property owners
The new legislation will have a big impact. Not only will each property need an energy performance certificate (EPC), it could be a big risk if the property does not rate well.
How likely is that? According to Knight Frank, approximately 20% of commercial properties are expected to be affected.
In addition, from 1st April 2016, tenants can request energy efficiency improvements which the landlord cannot refuse.
Find out more about the Energy Act 2011.
What this means for banks and building societies
The changes are likely to affect buy to let mortgages. As properties won’t be able to be let if they fail to comply, this poses a risk for the owners’ ability to collect rent and pay the mortgage.
- We can help you to get an accurate assessment for each building and give you the required EPC documentation. This helps secure your investment.
- We can check whether any existing EPCs are correct. If you’ve changed the property and especially if you’ve made any improvements, the rating may be wrong.
- We can advise you of the most effective ways to make improvements to improve your rating. And we’ll explain what funding is available (including through the Green Deal) to help you recoup the costs of improvements.