Hambleton District Council: penalty charge principles - The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

Introduction

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 introduced legal requirements on all landlords renting out property or renewing tenancies after April 2018 to ensure that the property meets the minimum energy efficiency standard which is an energy performance certificate (EPC) rating of band E.

The Regulations also apply to properties with existing tenancies from April 2020.

Since 2008 an owner or landlord has on sale, letting or construction of a property been required to make an EPC available to the prospective buyer or tenant.

Where a landlord wishes to continue letting property which is currently ‘sub-standard’, they will need to ensure that energy efficiency improvements are made which raise the EPC rating to a minimum of E or register a valid exemption with the national PRS Exemptions Register.

Regulations apply to domestic privately rented properties in England and Wales which are:

  • let under certain types of domestic tenancy and
  • legally required to have an Energy Performance Certificate

The Regulations do not apply to the Social Housing Sector.

Enforcement

Where the local housing authority has reasonable grounds to believe that any of the following have occurred:

  • a property is sub-standard and has been let on a new tenancy or let because of an extension or renewal of an existing tenancy
  • a landlord has registered false or misleading information on the PRS Exemptions Register
  • a landlord has failed to comply with a compliance notice

The local housing authority will enforce compliance with the domestic minimum level of energy efficiency in accordance with environmental health service’s enforcement policy.

Where the local housing authority is satisfied that a property has been let in breach, the Regulations state that it may serve a notice on the landlord imposing the following financial penalties.

Infringement  Penalty
Providing false or misleading information to the PRS Exemptions register £1,000
Failing to comply with a compliance notice £2,000
Renting out a non-compliant property (only one can apply) Less than three months non-compliance: £2,000 Three or more months non-compliance: £4,000

Where penalties are imposed under more than one of these paragraphs, the total amount of the financial penalty may not be more than £5,000.

Penalty charge principles

In accordance with the Regulations maximum fees amounts will be charged. The council will have regard to mitigating circumstances.

The penalty charge for the various infringements does not place an excessive burden on a landlord, however the lack of compliance directly transfers the financial burden onto the tenants and society in general.

Substandard properties result in higher tenant energy bills and for many the likelihood of living in fuel poverty. The health effects of living in cold homes can include cardiovascular and respiratory disease, especially in older people. This can lead to excess winter deaths and ill health associated with excess cold, costs to the NHS for treating the above diseases or time of work.

It is recognised that the imposition of the maximum potential fine, being £5,000 under the regulations, can present a financial burden but this is balanced against the increased costs and risks of living in a substandard property and the requirement under the regulations that a landlord, where applicable, should have spent £3,500 landlord contribution cap on improving the energy efficiency of a property.

The offence will be dealt with in accordance with the Environment, Leisure and Communities Enforcement Policy and an opportunity will be afforded to comply prior to any penalty charge being levied.

Appeals in relation to a penalty charge notice

The landlord has a right to seek a review of the penalty charge notice by writing to the authority (details on the Notice) within 28 days of the Notice being issued.

On consideration of any representation and evidence, the penalty charge notice can be confirmed, varied or withdrawn. This decision is confirmed by issuing a decision notice on the landlord. Any representation shall be considered on its individual merit.

If varied or confirmed, the Notice shall state a further appeal can be made to a First-tier Tribunal and details will be given. The Tribunal may quash, confirm or vary the penalty charge notice.

Recovery of penalty charge

The local housing authority may recover the penalty charge as laid out in the Regulations. Due to costs incurred by the council, any penalty charge notice shall be pursued for payment.

Publication penalty

Publication penalty means publication on the Private Rented Sector (PRS) Exemptions Register of the following information in relation to a penalty notice where the council decides:

  • where landlord is not an individual, the landlords name
  • details of the breach of these Regulations in respect of which the penalty notice has been issued
  • the address of the property in relation to which the breach has occurred
  • the amount of any financial penalty imposed

This information shall be published for a minimum of six years in accordance with the Environmental Health Service’s data retention policy.

Review of statement

This Statement of Policy shall be reviewed and amended to reflect any change in legislation, corporate policy or official guidance. Any amendment shall be in line with meeting the requirements of the legislation. A review shall take place annually should no other change have occurred.

Date of review 19th April 2022