Landlords: Prepare Yourselves for Tenants’ New Right to Request Energy Efficiency Improvements
Published on May 2, 2016 by Sarah Mac
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 give eligible residential tenants the right to request energy efficiency improvements in their homes from 1 April 2016. As a landlord, however, although you may not unreasonably deny them consent, you do not need to worry about the financial implications, because they have to fund it themselves.
Which Properties are Eligible?
The property must be privately rented. This particular regulation does not apply to council or other public sector housing. In the private sector, all rented homes are eligible unless they are in a property due for demolition or in a temporary structure with up to two years of planned use only.
Which Tenants are Eligible?
All assured shorthold tenants living in an eligible property can make a request, whether or not the property concerned has an Energy Performance Certificate (EPC). Tenants of properties let on a tenancy which is an assured agricultural occupancy, or a protected tenancy within the meaning given in the Rent (Agricultural) Act 1976, or on a statutory tenancy within the meaning of the Act, can also make such requests.
The tenant must also have the means to fund the improvements, either privately or using Green Deal finance or public sector grants or incentive schemes. If the tenant wishes to have government funding or make use of an Energy Company Obligation (ECO), a domestic energy efficiency programme which works alongside the Green Deal, an EPC must be available.
Which Requests are Eligible?
The type of request that is eligible is one that qualifies for the Green Deal, or to connect a gas supply where one does not exist, but where the gas mains are within 23 metres of the property. The Green Deal covers installations such as insulation, showers, and more effective doors and windows in protecting a home from the elements.
The landlord will only have grounds for withholding consent if there is no EPC, surveyors report or Green Deal Advice Report (GDAR), and a surveyor or other appropriate professional advises against it.
What Should you Do if you are a Landlord who Receives a Request?
If you receive such a request, you need to consider the details of the energy efficient measures proposed, and check that the tenant has supplied evidence that the funds will be forthcoming to complete the work. Where works are not to be paid for with Green Deal Finance, the tenant must prove that they will be carried out by an authorised Green Deal installer or one who meets relevant installer standards.
You are required to make a Full Response, although this can be preceded by an Interim Response. You might want to use the latter to give you time to get professional advice if there is no EPC. A surveyor might also propose a different solution to deliver the same energy efficiency improvements. As long as this would not be more expensive to the tenant in both the short and long term, you could then make a Counter Proposal.
So this regulation is not one that should unduly worry landlords. These would be improvements that would be likely to add value to your property, or make it easier to let, and the only cost would be in the time you need to take over your response, plus any professional advice needed.