Green Deal for Private Tenants
From 1st April 2018, there will be a requirement for any properties rented out in the privates sector to normally have a minimum energy performance rating of ‘E’ of an Energy Performance Certificate (EPC) ie. F & G rated properties will be unlawful to rent out.
The regulations come into force for new lets and renewals of tenancies with effect from 1st April 2018. From 1st April 2023 all existing tenancies will be included. Known as MEES (minimum energy efficient standards) the regulations affect England and Wales with Scotland being covered under separate legislation. MEES does not apply to lettings of 6 months or less or lettings exceeding 99 years.
It will be unlawful to rent a property which breaches the requirements for a minimum E rating, unless there is an applicable exemption such as listed buildings or those that are of special architectural historical merit whereby the alterations to achieve an EPC E rating would harm the character or appearance of the building.
There is a sliding scale of penalties ranging from up to £5000 for a breach of less than 3 months up to a maximum of £150,000. Publishing false or misleading information also attracts a £5,000.
Landlords can be exempt from having to comply with MEES by having all the cost saving energy efficient measures have been carried out under a Green Deal golden rule or a 7 year pay back loan
The Green Deal Plan provides the vehicle in which landlords can update their properties in conjunction with existing or new tenants and achieve at least an EPC of E rating. The tenants can then have the benefit of new energy efficient measures such energy efficient boilers, new external wall and floor insulation, loft insulation and draught proofing. The landlord would benefit from having a fully compliant house with new energy efficient upgrades, adding value to their house.
Key Points for Tenants:
- Simple Application process
- Both Tenant and Landlord need to give their permissions to apply
- Tenant will benefit from warmer and more energy efficient home
- Upgrades with reduced upfront costs for landlords
- Repayment plans are hassle free as they are automatically added to the existing electricity bill (this includes prepayment meters)
- Tenants are no worse off financially because of the Golden Rule i.e. the total first year repayments do not exceed the total first year savings on .
- The Plan is linked to your property, rather than the bill payer, so when you move house the plan remains with the property it is benefiting.
Eligibility for Tenants:
- Proof of Identity
- Proof of address – with bill payers name on the electricity bill. A full printed copy of the electricity bill – not just the 1st Page.
- No CCJ’s in the previous 24 months or bankruptcy in the previous 3 years
- No defaults in the past year or ever on utility bills
- Other checks may be done with fraud prevention databases.
- Annual income must be over £12.000.00
- Maximum age for bill payer is 75 years old
- Energy bill debt arrears must be less than £200 on a standard meter or less than £500 on a pre-payment meter
Oakrun Partners Ltd comply with the Green Deal Code of Practice Version 5 issued by the Department for Business, Energy & Industrial Strategy.