Minimum Energy Efficiency Standards – EPC rating E by April 2018

From April 2018 under the Minimum Energy Efficiency Standards (MEES) it will be unlawful in England and Wales to grant a new tennacy on a property with an Energy Performance Certificate (EPC) of less than E.

The Department for Business, Energy and Industrial Strategy have issued guidance for landlords and local authorities, because it is believed up to 1 in 20 properties would not achieve and EPC rating of E.

Click Here to see the full guidance.

The Energy Efficiency Regulations 2015 are designed to tackle the least energy efficient properties in
England and Wales – those rated F or G on their EPC. The Regulations establish a minimum standard for both domestic and non-domestic privately rented property, effecting new tenancies from 1 April 2018.

• From the 1st April 2018, landlords of relevant domestic private rented properties may not grant a tenancy to new or existing tenants if their property has an EPC rating of band F or G.
• From the 1st April 2020, landlords must not continue letting a relevant domestic property which is already let if that property has an EPC rating of band F or G

It will be local authorities that are tasked with enforcing the new minimum energy efficiency ratings.

An EPC lodged with the EPC register will be valid for 10 years so there will be no need for a new EPC for each new tenancy.

The current domestic regulations are based on a principle of ‘no cost to the landlord’, this means that landlords of F or G rated homes will only be required to make improvements to these properties where they can do so entirely using third party finance from one or more sources.

The Green Deal, is one of the ‘financial arrangements’ that landlords of domestic properties can use to fund improvements under the Regulations. Where available, Green Deal finance will enable landlords to cover some or all of the costs of compliance through the Pay As You Save mechanism.

Where funding is not available to fully cover the cost of making a recommended improvement then the landlord will not be required to make that improvement to the property. However, where a property cannot be improved to EPC E because recommended measures cannot be installed without cost, the landlord will still need to take steps to register an exemption on the national PRS Exemptions Register.