In 2018, the landlord’s EICR (Electrical Installation Condition Report) requirements were change by introducing a minimum energy rating of “E” or higher for new tenants. Currently, this rule applies to all rentals, not just new ones. In 2022, changes to the minimum energy efficiency standards were also announce. This will affect landlords and tenants from 2025.
This article reviews everything you need to know about the changes made in 2020, the latest updates to the EICR, legal obligations, and what will happen if the property does not have an Electrical installation condition report.
What are the current EICR requirements?
Since October 2008, Electrical Installation Condition Report EICR have been require for rental properties in London and Wales. As of April 1, 2018, the Minimum Energy Efficiency Standard (MEES) has been implement. For this reason, all assets in UK and Wales must be license or sold with a minimum EICR rating of ‘E’ or higher.
How have the EICR requirements changed?
Effective April 1, 2020, minimum energy efficiency standards apply to all existing rentals, not just new or refurbish. If the property’s valid EICR rating is not greater than or equal to “E” by this date, this is not legally allow.
What are the new EICR regulations for landlords in 2022?
Following discussions in December 2020, the government announce changes to the minimum energy efficiency standards for London, UK. The government has propose that all rental properties require an EICR rating of ‘C’ or higher by 2025. As with previous changes, new regulations will be introduce first for new tenants and then for all rentals from 2028 onwards.
Regulatory changes hope to increase energy efficiency in homes and reduce carbon emissions as part of the government’s goal of becoming zero-zero by 2050. The penalty for not having a valid EICR will also be increase from 2025 to 255,000 to £30,000.
What is EICR?
The EICR (Electrical Installation Condition Report) provides detail information about a property’s energy efficiency and carbon dioxide emissions. To get an EICR Certificate, you need an energy assessment survey of your assets. National energy assessors perform internal and external inspections to determine a building’s energy efficiency and level of potential if improvements are made.
Some things the evaluator takes into consideration:
- Ceilings, walls and insulation
- Boiler and heating system
- Renewable energy equipment (solar panels or wind turbines)
- the heater
- Building Dimensions
- The year the property was built
Once the appraiser completes a thorough examination, an EICR is compile and the asset’s performance is evaluate. “A” is the most effective and “G” is the least.
Do I need tenant approval before setting up an energy rating?
The landlord and letter agent must notify the tenant in writing at least 24 hours prior to visiting the property. Most tenants are willing to take responsibility because the energy performance rating and EICR are legal requirements, but you may also want to show up when the appraiser goes down. Tenants must agree to visit all properties except for emergencies such as fire, flood and gas leakage.
How long will the EICR last?
Once the EICR is issue, it is valid for 10 years. Once this is done, you will not need to purchase a new rental property unless you sign a new lease agreement with a new tenant or sell the property. EICR also comes with a recommendation report that includes suggestions and improvements to further enhance your assets. Evaluators’ suggestions may include:
- Installation of hollow walls and upper insulation
- Pull-resistant windows and doors
- Insulate pipes and tanks
- Condensing boiler installation
- Reduce water consumption
- Consider using energy-saving glass
- Consider renewable energy technologies such as wood fuel heaters, solar panels, wind turbines, etc.
- Low energy bulbs install
When should the EICR be updated?
You do not need to automatically obtain a new certificate when your Electrical Installation Condition Report Certificate expires. You only need to get a new EICR if you want to let a new tenant or sell a property.
Once an Electrical installation condition report Certificate reaches 10 years and expires, there are currently no automatic requirements to run a new EICR certificate. The next EICR is only require when the next operating point is reach, i.e. when the property is subsequently sold or approved by a new tenant.