Last updated on February 27th, 2018 at 03:58 pm

The regulations only apply to properties that already have an EPC, or are required to have one on a new letting, and include flats and houses (self-contained) but not bedsits, unless the bedsit is within a property that already has, or needs, an EPC.

What will landlords have to do to comply?

Landlords will need to assess their property portfolio to find out which properties fall below the required level, i.e. have an F of G EPC rating, and make plans to upgrade their properties.

Some of the improvements landlords can make, or can be ordered to make, to achieve the improvement include the installation of:

• thermostatic combi boilers
• thermostatic room heaters
• hot water cylinder insulation
• more efficient shower systems
• more efficient hot water systems
• cavity wall insulation
• improved roof insulation
• draught proofing
• properly sealed doors and windows or secondary double glazing
• pipework insulation
• solar panels for water heating
• solar blinds and shutters
• under floor heating
• under floor insulation
• waste water heat recovery devices
• low energy lighting
• smart meters

There are many other installations that will help improve efficiency and about which landlords should make themselves aware.

By planning now, landlords can give themselves time to make the necessary changes over the next year, and may be able to fit the changes in with redecoration or other alterations that need making.  Of course, the changes are going to involve expense, but this can be countered by the fact that the property will be more desirable and should command a higher rent.  Also the regulations specify that only “appropriate, permissible and cost-effective improvements” are required.

Exemptions to making improvements

There are some exemptions to making improvements and these include where landlords can prove that:

• the property remains below an E rating even though they have undertaken those improvements that are cost-effective
• where ‘green deal’ finance cannot be obtained
• a third party – such as the superior landlord, or the tenant refuses permission to carry out the improvements (where it is required)
• a qualified, independent surveyor indicates that the measures would cause a capital devaluation of the property of more than 5%
• a suitably qualified person indicates that wall insulation would not be appropriate as it would have a negative impact on the fabric or structure of the property

Properties exempt from complying with Minimum Energy Efficiency Standards

Some buildings are exempt from the EPC requirement, and these could include:

• buildings that don’t need an EPC – this can include industrials sites, workshops and non-residential agricultural buildings with a low energy demand
• buildings protected by special architectural or historical merit
• buildings that are protected as part of a designated environment
• temporary buildings planned for use for 2 years or less
• residential buildings that are intended for use of less than 4 months each year (such as holiday lets).
• standalone buildings with a total usable floors pace of less than 50 square meters
• certain listed buildings
• buildings let on a short-term lease of less than 6 months, unless the tenant has already occupied the property for more than 12 months
• properties that are let on long term leases of 99 years or more

For an exemption to be valid, it will need to be registered on the PRS (Private Rented Sector) Exemptions Register.  All exemptions will last for 5 years only, after which time they will need to be renewed and if they are not still effective, improvements will need to be carried out.

What will happen where landlords do not carry out the necessary improvements?

Compliance with the regulations will be enforced by local authorities.  If they believe that a landlord is not compliant, or has not proved an exemption they can serve a notice on the landlord and can issue a penalty of up to a maximum of £5,000 (domestic only), as follows:

Non-compliance	Maximum penalty
Letting out a non-compliant property for less than 3 months	£2,000 (residential) or 10% of rateable value (commercial)
Letting out a non-compliant property for more than 3 months	£4,000 (residential) or 20% of rateable value (commercial)
Providing false information on the PRS register	£1,000
Failure to comply with a compliance notice	£2,000

If a landlord lets, and continues to let, a property in breach of the regulations, the validity or legality of the tenancy itself is not affected and rent is still payable.

Please note that these guidelines are not intended to provide a full picture of the MEES or of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, a copy of which can be found here.

Landlords and tenants can also find guidance on making energy efficient changes in the Department of Energy and Climate Change’s guidance.

If you are looking for guidance on the energy efficiency standards of non-domestic private rented property, you can find it in the government’s guidance on private rented property.

If you want advice or assistance or buying domestic leasehold property, please contact our experts now, or find out more on our web pages.