The Legal Framework and Timeline
PAS 2035 has been introduced as the standards framework for the end-to-end delivery of domestic retrofit work. This is being linked with £640 million per year funding for the retrofit improvement of homes.
All of this is being done because of the Climate Change Act 2008 which looked to reduce greenhouse gas emissions 34% by 2030 and 80% by 2050 (against the 1990 baseline). In May 2019 that was amended to ‘net zero’ by 2050.
The government aims to retrofit 500,000 homes a year, these being whole house projects. In doing so, the government is also trying to reduce or eliminate fuel poverty as it will then cost less to heat a home.
The timeline is thus: Landlords will have to achieve an EPC ‘D’ standard by April 2025 for all new lets and for all lets by April 2028 with a ‘C’ by 2035 “where practical, cost-effective and affordable”.
Exemptions may be applied for if a standard cannot be met.
Registering an exemption
There are 6 criteria for any landlord to claim an exemption if their property falls below the government target. For all claims of exemption, you will need the property address, a valid EPC and state which exemption is being sought.
‘All relevant improvements made’ exemption
Register this exemption if the property is still below standard after improvements have been made up to the cost cap, or there are none that can be made.
‘High cost’ exemption
Register this exemption if no improvement can be made because the cost of installing even the cheapest recommended measure would exceed the cost cap.
To register this exemption, 3 quotes from qualified installers for purchasing and installing the cheapest recommended measure are needed along with your written confirmation.
Wall insulation exemption
Register this exemption if the only relevant improvement for your property is wall insulation and you have obtained written expert advice showing that this would negatively impact the fabric or structure of the property (or the building of which it is part).
To register this exemption, you need to provide a copy of the written opinion of a relevant expert e.g. RICS surveyor, stating that the property cannot be improved to standard because a recommended wall insulation measure would have a negative impact on the property (or the building of which it is part).
Third-party consent exemption
Register this exemption if the relevant improvements for your property need consent from another party and despite your best efforts that consent cannot be obtained, or is given subject to conditions you could not reasonably comply with.
To register this exemption, you need to provide copies of correspondence or documentation demonstrating that consent for the recommended measure was required and sought, but that consent was refused, or was granted subject to a condition that you were not reasonably able to comply with
Property devaluation exemption
Register this exemption if the measures would devalue the property by more than 5%. In order to register this exemption you will need a report from an independent surveyor. This surveyor needs: 1) to be on the Royal Institute of Chartered Surveyors (RICS) register of valuers and; 2) to advise that the installation of the relevant improvement measures would reduce the market value of the property, or the building it forms part of, by more than 5%
Temporary exemption due to recently becoming a landlord
If you have recently become a landlord, you will not be expected to take immediate action to improve your property to standard. You may claim a 6 months exemption from the date you became a landlord.
To register this exemption, you need to provide the date on which you became the landlord for the property and the circumstances
With the exception of the 6 month exemption outlined above, all these exemptions last 5 years. After which a landlord must try again. If still not possible, a further exemption may be made.
Registering an exemption
Follow this link to the government page to register an exemption.