EPCs, Green Deal Scheme and the Energy Act 2011: Legislative Changes
There have been recent changes made in government legislation which will directly impact Energy Performance Certificates (EPCs) and the way in which they are utilised in the United Kingdom. At the moment, EPCs are required before you market a property for sale or rent, carry an energy performance chart, suggest possible improvements and list the effect of your property on the environment. This is all well and good, but in an effort to make them more effective and useful in the battle to save the environment, the government is giving EPCs a bit more bite to them with the introduction of the Energy Act (2011) and Green Deal Scheme.
The Energy Act (2011) essentially kick starts the move into forcing Britain to become a more energy efficient and energy responsible country. The way it impacts EPCs is that the recommendations for improvements section of the certificate now has an extra section marked “Available with Green Deal”. If one of the recommendations can be paid for and implemented as part of the Green Deal Scheme, then there will be a ticked green circle next to it. Until now the Green Deal options, like all of the improvements listed on the EPCs, were strictly voluntary to implement. According to the Department of Energy and Climate Change (DECC) website, the Energy Act (2011) changes that come in to force in April 2016 means that Landlords will not be able to refuse reasonable requests from tenants for improvements to energy efficiency that are available on the Green Deal. The fairly predictable next step for the move towards energy efficiency is to set a compulsory minimum standard. After April 2018, it will be required that every rental property meets a certain standard of energy efficiency on their EPCs. It is expected that the minimum energy efficiency rating will be set at grade E on the current A to G grade system. It will be illegal to rent out your property to anyone should it not meet this minimum requirement.
The Green Deal Scheme, as outlined earlier, is something which has been included on the recent changes to the Energy Performance Certificates. There might be some confusion, however, as to what it actually is and how it will affect landlords and tenants. The essence of the Green Deal Scheme is that it removes the common situation in the Private Rented Sector (PRS) where all of the improvements are shouldered by the landlord while the tenant pays less in energy bills. The Green Deal introduces a system whereby the improvements are paid for by the electricity bill and stay with the property, not the landlord or tenant. This means that should new tenants move in or the landlord sell the property, the energy efficiency improvements will carry over into the energy bill of the next tenant or resident. There are absolutely no costs to pay up front as all of the work is paid for in instalments lasting up to 25 years in the electricity bills for the property. In essence, the Green Deal Scheme provides a fairer redistribution of the costs of improving the energy efficiency of the country via the suggestions of the EPCs.
You may be wondering exactly why the Government is starting to regulate the PRS in stricter terms. Well there are three simple reasons outlined on the Department of Energy and Climate Change (DECC) website which explains that the PRS is simply not doing its part to reduce energy consumption and waste. This is evident from such poor performances on the EPCs. The Private Rented Sector, according to DECC findings, has almost double the percentage of G rated properties than owner occupied properties. 20 per cent of properties in the PRS are fuel poor. Nearly two-thirds of commercial properties are part of the PRS and of those, 18 per cent only manage to score F and G on their EPCs.
The £5000 maximum fine has been listed on the DECC website for domestic properties not reaching the minimum standard. This means that similarly harsh penalties can be expected for non-domestic properties in order to make every property as efficient as possible for the next generations to enjoy greener, more energy efficient properties in the future.
Even with the new legislation, EPCs are still a legal requirement for any property being sold or let in the United Kingdom. In order for you to obtain your own certificate and avoid significant financial penalties, simply fill out our online form. My London Tradesmen will then contact companies on your behalf and you will be given up to 3 quotes which will help you make an informed decision regarding which tradesman to employ.
All of the tradesmen we use have received up to date training and are registered with all the necessary bodies. My London Tradesmen will only provide quotes from trustworthy and reputable tradesmen.