Energy Efficiency Improvements

Tenant's Energy Efficiency Improvements

A tenant is allowed to reasonably ask for a relevant energy efficiency improvement. A relevant improvement will only be reasonable if it–

  • can be wholly financed, at no cost to the landlord, using funding provided by the central Government, a local authority or any other person,
  • can be entirely funded by the tenant, or
  • can be financed by a combination of those two arrangements

A request must be in writing and may be given by post.

When a landlord receives a request, the landlord can only refuse consent on limited grounds. But, because a request is only "relevant" if it is of no cost to the landlord, this shouldn't be too much of an issue. A landlord may fund improvements if they prefer.

A landlord needs to provide an "initial response" within one month of the tenant's request, and there are provisions available where consent is required from a superior landlord. It is possible for a landlord also to serve a "counter-proposal" that specifies an alternative (or multiple alternatives).

There will be a few exemptions from having to carry out improvements, such as if the works would reduce the property's market value by more than 5% or consent from a third party has been refused.

An application to the First-tier Tribunal can be made to determine any disputes that may arise.

Minimum Level of Energy Efficiency

From 1 April 2018, all rented property let on assured shorthold tenancies, regulated tenancies under the Rent Act 1977 and four types of agricultural tenancy, which is to have a new tenancy must have an EPC rating of at least "E".

This requirement also applies to renewal tenancies to (same tenant for the same property) on or after 1 April 2018. The duty is also triggered by "an extension" where heating or cooling services are extended into the extension.

From 1 April 2020, all domestic property (including existing tenancies) of the types listed above must have the minimum E rating where it is a lawful requirement to have an EPC (e.g. it is within ten years of its original commissioning). Non-domestic properties have until 1 April 2023 (including existing tenancies) to meet the E rating.

There are several exemptions for the minimum standard where-

  • the property is unable to be brought up to the standard after £3,500 has been spent on recommended energy improvements
  • the tenant refuses consent (exemption ends when the tenant refusing access leaves the property)
  • the landlord is unable to obtain permission from a third party
  • works required to bring the property up to the "E" level would devalue the property by more than 5% of the market value

Where a domestic property has been let, which doesn't meet the minimum standard, the tenancy remains valid between the landlord and tenant, but a fine will be payable by the landlord of up to £5,000. Penalties can be much more significant for non-domestic properties depending on their size.

The Department for Business, Energy & Industrial Strategy has published helpful guidance about the minimum energy requirements available here.

The Exemptions Register can be found here.

Energy Improvement Grants

Several grants may be available to make energy improvements to a residential home.

The Affordable Warmth Obligation is the most familiar and is universally available. It is available on rented and owner-occupied property and may cover all or part of the insulation cost or a boiler replacement. To be able to obtain the work, the occupier must be on one of the following benefits:

Pension Credit

  • Child Tax Credit
  • Working Tax Credit
  • Income Support
  • Income-based Jobseeker's Allowance
  • Income-related Employment and Support Allowance
  • Universal Credit

There are several extra conditions, including certain limits on the income received, and other benefits are paid in certain circumstances.

More information and how to apply are available here.

From time to time, the government, private organisations, and local authorities provide other grants or incentives. See here for more information.

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