A minimum energy performance rating of E will be required to rent a residential property as from 1st April 2018. This requirement will apply to all tenancies that begin or are renewed on or after 1st April 2018, for existing tenancies the regulations will not apply until 1st April 2020. Landlords that breach these regulations may face a fine of up to £5,000.
The new regulations will apply to assured, assured shorthold and Rent Act tenancies which have an EPC or should have an EPC. Where the EPC indicates a rating of F or G it will be considered substandard under the regulations. The regulations prohibit any landlord from letting any substandard property until the recommended energy efficiency improvements in the EPC have been carried out. Such works only needs to be appropriate, permissible and cost-effective under the regulations but landlords are free to carry out works to an even higher standard.