From 1 April 2018, residential landlords will be prohibited from allowing new lettings of sub-standard property with Energy Performance Certificate ratings of less than "E". From 2020, residential landlords must not continue to let out sub-standard property on existing leases. This will give landlords two years from April 2018 to take action around existing leases with low EPC ratings.
Thousands of buy to let landlords will have to pay significant sums to make their residential properties more energy efficient, including works to insulation, cavity wall filling and changing boilers.
Commercial landlords will be similarly restricted from granting new leases of sub-standard property from April 2018 and continuing to let out inefficient properties on existing leases from April 2023.
The question is who is going to pay for the improvements to be made to these properties? Apart from the unpopular Green Deal funding which is being phased out, there are no grants or initiatives from the government targeted at helping landlords bring properties up to standard.
Hundreds of thousands of buy-to-let homeowners will have to pay a “green tax” of up to £5,000 to make their properties more energy efficient, the Telegraph has learnt. Landlords will have to pay upfront for measures such as insulation, cavity wall filling and new boilers from 2018. Until recently they could apply for loans from the Green Deal scheme for improvements, which are then repaid by tenants who benefit from lower bills. But the new Department for Business, Energy and Industrial Strategy is proposing owners provide the money.