Your FAQs: Renters' Rights and energy efficiency
Last week, we held a webinar exploring the link between the Renters’ Rights Act and the proposed new Minimum Energy Efficiency Standards (MEES) for privately rented homes.
Landlords in England and Wales will be required to meet EPC C – or register a valid exemption – to be able to continue renting out their properties from 2030.
For landlords in England this requirement is further complicated by new rules coming in under the Renters’ Rights Act, which will make it more challenging for landlords to obtain the vacant possession that may be required for major works.
The webinar explored ways in which landlords can plan for large-scale retrofit works when they cannot anticipate when a tenant may leave, and what they should do if their property does not currently meet EPC C standards while it remains occupied.
You asked us a wide range of questions during the session. Here are some of the most frequently asked.
Q: What is Ground 6, and can I use it to gain access to the property?
A: Following the abolition of section 21 repossessions under the Renters' Rights Act, revised section 8 grounds were introduced as new routes to possession.
Ground 6 allows possession if substantial works are needed, but it's rarely applicable to energy-efficiency upgrades.
To use this ground, you must demonstrate a clear intention to undertake the works and show that they are disruptive enough that the tenant cannot reasonably stay in the property.
The court will also evaluate whether the tenant could remain if the tenancy were varied to allow access.
Consequently, possession is generally granted only in specific situations, such as when the property must be vacant for a long period or is being divided into multiple homes. Relying on this ground to access the property may be more complicated and can slow you down when retrofitting.
Q: How will the property value adjustment work, and how do I evidence the value of my property?
A: The Government intends to introduce an exemption for properties that are worth less than £100,000.
For these properties, the maximum amount a landlord would be required to spend would be 10% of the property's value, rather than the £10,000 cap. For example, a property valued at £80,000 would have a maximum spend of £8,000.
The Government announced that it will start assessing property values in 2030 and may revise them when the exemption ends or the property is revalued. We expect more guidance on how to record property values; however, the original purchase price should not automatically be the relevant valuation, and a valuation from a qualified surveyor may be required when registering this exemption.
Q: How can I register the solid wall insulation exemption?
A: The Government has proposed a solid wall Insulation exemption as part of the future MEES framework. You can use this exemption where improvements would involve cavity, external, or internal wall insulation, and an expert confirms these would negatively affect the property.
Q: What is the best way to get an EPC with tenants living in the property?
A: You do not need to wait until a property becomes vacant to obtain an EPC. Here’s what you need to do:
- Arrange an appointment with an energy assessor, agree a convenient time with the tenant and provide the appropriate notice. It can also help to:
- Explain why the EPC is needed and how energy efficiency improvements could benefit the tenant.
- Check whether the tenant may be eligible for grant funding.
- Agree dates and timings for any works in advance.
- Discuss how disruption can be minimised, particularly for larger projects.
For significant works, landlords could also consider whether a temporary rent reduction or alternative accommodation would help minimise disruption.
Q: What can I do if my tenant doesn’t give me access to the property?
A: If you need access to carry out an inspection, obtain an EPC or undertake energy efficiency improvements and your tenants refuse access, there are generally three options:
- Work with the tenant to address any of their concerns and agree access.
- Seek an injunction to obtain access to carry out the necessary works.
- Register a third-party consent exemption where the requirements for the MEES exemption are met.
Keep a record of your communications with the tenant. This can help show that you took reasonable steps to obtain access and carry out the required improvements.
Preparing for the changes
The Renters’ Rights Act and proposed MEES are among the biggest changes in the private rented sector, and understanding how these two policies intersect is vital.
As the detailed MEES regulations and guidance develop, landlords should keep checking for the latest updates before making decisions based on the proposed requirements.
