Under the Energy Efficiency (private, rented property) (England and Wales) Regulations 2015, it will be unlawful to let domestic and non domestic properties with an EPC rating below E. The legislation has been put into place to meet obligations to improve energy efficiency in inefficient properties under the Energy Act 2011, and to meet UK targets of CO2 reduction.
From April 1st 2018, the minimum energy efficiency standard will apply to landlords and property owners upon the granting of a lease to a new tenant and lease renewals to existing tenants, unless exemptions apply.
Fines can be enforced dependent on the type of infringement and the length of MEES noncompliance.
£1000 - £5000
Non Domestic Properties
£5000 - £150, 000
Properties that are let on tenancies of more than 99 years and less than 6 months are excused, along with any properties which are exempt from having an EPC. Assured tenancies under the Housing Act 1998, and regulated tenancies, such as housing associations are also exempt for domestic properties.
Landlords may be exempt from the minimum energy efficiency standard when:
Improvements are not cost effective
It has been independently verified that improvements may decrease the value of a property by 5% or more, or in some circumstances, damage the property.
Third party consent cannot be obtained for the improvements, for example, planning authorities, tenants, lenders etc.
The minimum energy efficiency standard will apply to all privately rented domestic properties within the scope of the regulations, from 1st April 2020, followed by non domestic in 2023. Things to remember:
Landlords will need an EPC before the next time they lease a property.
An EPC may need reassessing due to improved building regulations which may have decreased previous ratings.
A minimum EPC rating of E must be achieved by 2018.