Buy-to-Let landlords are facing a ticking time bomb on forthcoming Energy Efficiency legislation where their properties are not up to the minimum standard.
Legal firm Maples Teesdale has warned that the new energy efficiency standards equate to a “ticking time bomb” that could have a detrimental impact on rental income and property values if left unaddressed.
As reported by propertywire.com UK residential landlords are at risk of financial penalties and being unable to let their properties if they fail to meet minimum energy efficiency standards (MEES) that come into play in 2018, it is claimed.
The non-domestic minimum energy efficiency regulations for England and Wales slated for implementation 1st of April 2018 will mean that all relevant properties (AST lets) will have to meet the minimum standard before being let to tenants, except where exemptions apply.
In addition, the Tenant’s Energy Efficiency Improvement Regulations, to be brought into force by 1st April 2016 will empower tenants to request consent for energy efficiency improvements, a request that cannot be unreasonably refused by landlords.
Neil Sagoo, partner Maples Teesdale has said that:
“These regulations are likely to have a big impact on the private rented sector. They are presenting a straightforward ultimatum: bring your properties up to scratch in terms of energy efficiency, or risk losing income,”
“This means that landlords can no longer pay lip service to energy efficiency. Whereas it was once a worthy aspiration, it is becoming is fundamental as fire safety or building regulations and is to be ignored at your peril,”
The Government plans to have the regulations in place ahead of the May general election, with implementation following in stages, on all new lettings from April 2018 and for existing lettings from April 2023.
Private Rented Sector Energy Efficiency Regulations (Domestic) (England and Wales)
Buy-to-Let Landlords are Facing a Ticking Time Bomb on Forthcoming Energy Efficiency Legislation – http://t.co/csV023FKEH
— LandlordZONE (@LandlordZONE) January 28, 2015