21/12/2017
Removing the ‘no cost to the domestic landlord’ principle (E, W)
Landlords of domestic properties with Bands F and G rated Energy Performance Certificates (EPCs) may have to contribute some of the cost of statutory energy efficiency improvements to their properties themselves after April 2018, under proposals to replace the current ‘no cost to the landlord’ safeguard with the requirement to pay a cost-capped contribution.
Currently, private landlords are required under Part 3 of ‘The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015’ to ensure Bands F & G energy efficiency rated properties get as close to Band E standard as possible, using 3rd party funding from Pay as you save, grants or subsidies. If no 3rd party funding is available, they are required to pay nothing under the ‘no cost to the landlord’ safeguard.
There are currenty an estimated 280,000 rented private domestic properties in England and Wales with EPC ratings of F or G. The current scheme to improve their energy performance relied heavily on Green Deal Finance as one of the 3rd party sources of funding.
As this is now only available through private sources, has not been widely used and may not be universally available to landlords, the government is seeking views on how to future-proof the scheme so it can operate independently, while protecting landlords against excessive cost.
The preferred solution set out in ‘Domestic Private Rented Sector minimum level of energy efficiency’ is to replace the ‘no cost to the landlord’ provision with the requirement for the landlord to make a contribution that it proposes to cap at £2,500 per property where 3rd party funding is unavailable.
Whichever scheme is adopted will apply to qualifying properties rented after 1 April 2018.
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