This has been introduced by government to improve the quality of private rented buildings and reduce the overall CO2 emissions in accordance with the UKs targets for decarbonisation. Landlords and their agents should act by commissioning an up-to-date Energy Performance Cert which will identify the current rating (which may have changed over time), and recommend opportunities for improvements.

 

Domestic/Residential Landlords? 

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From the 1st April 2018 all private rented properties must achieve an energy efficiency rating of at least an E on their EPC, to meet the minimum standards. This will initially only apply upon the granting of a new tenancy to a new or existing tenant.

 

Landlords will need to take action to avoid any non-compliance penalties (estimated at £5000) and protect the value of their assets. If a property does not meet the minimum standards, it will be deemed unlawful for landlords and agents to let or market these properties.

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Non-Domestic/Commercial Landlords?

 

From the 1st April 2018, it is now unlawful to grant a new lease for properties in England and Wales which do not meet the Minimum Energy Effciency Standards (MEES). The regulation also applies to lease renewals.

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It is important to act quickly to ensure your property complies as the valuations of properties not meeting the standards are now likely to be affected, as their marketability will be diminished. Moreover, financial penalties for non compliance are linked to the rateable value of the property, but could be as much as £150,000.

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