Are you energy efficient enough to let?

The government has introduced a new requirement that both commercial and domestic rented property must achieve a minimum energy efficiency standard (MEES).

The required standard is an “E” Energy Efficiency Certificate (EPC) rating or higher. An EPC is a certificate containing information about the energy efficiency of a building and must usually be obtained when a building is constructed, sold, rented out or modified in a particular way. EPC energy ratings are on a scale of A-G with A being the most energy efficient. 

With some exceptions, a property that does not achieve an E or higher rating is a “sub-standard” property and must not be let until the landlord carries out “relevant” energy efficiency improvements to bring the property to the required standard. Limited exemptions are available but must be registered in a central public register.

As to timing, a landlord cannot grant a new lease or tenancy of sub-standard premises on or after April 1, 2018.  Properties that are already let have a little longer to comply: April 1, 2020 in the case of domestic property and April 1, 2023 in the case of commercial premises.

For further information please contact Sian Skerratt-Williams or your usual contact at Norton Rose Fulbright.