Minimum Level of Energy Efficiency


The Minimum Level of Energy Efficiency

The Regulations set out the minimum level of energy efficiency for private rented property in England and Wales. In relation to the non-domestic private rented sector, Part 3 of the Regulations contains the minimum level of energy efficiency provisions, which is currently set at an energy performance certificate (EPC) rating of at least band E. As band E is a minimum, landlords who are installing relevant energy efficiency improvements may also wish to aim above and beyond the current requirement in order to achieve greater energy savings.


The minimum level of energy efficiency provisions will mean that, subject to certain requirements and exemptions:
a)  from 1 April 2018, landlords of non-domestic private rented properties (including public sector landlords) may not grant a tenancy to new or existing tenants if their property has an EPC rating  of  band F or G (shown on a valid Energy Performance Certificate for the property).
b)  from 1 April 2023, landlords must not continue letting a non-domestic property which is already let if that property has an


EPC rating of  band F or G.

Where a landlord wishes to continue letting property which is currently sub-standard, they will first need to ensure that energy efficiency improvements are made which raise the rating to a minimum of E. In certain, limited, circumstances landlords may be able to claim an exemption from this prohibition on letting sub-standard property, this includes situations where all improvements which can be made have been made, and the property remains below an E. Where a valid exemption applies, landlords must register the exemption on the database set up for this purpose – the PRS Exemptions Register.


Enforcement of the Minimum Level of Energy Efficiency
Local Weights and Measures Authorities will enforce the minimum standards. They may check whether a property meets the minimum level of energy efficiency, and may issue a compliance notice requesting information where it appears to them that a property has been let in breach of the Regulations (or an invalid exemption has been registered in respect of it).  Where an enforcement authority is satisfied that a property has been let in breach of the Regulations it may serve a penalty notice on the landlord imposing financial penalties. The authority may also publish details of the breach.  The landlord may ask the enforcement authority to review the penalty notice and where it is upheld on review, the landlord may then appeal the penalty notice to the First-tier Tribunal.


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