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Minimum Energy Efficiency Requirements in England & Wales

Minimum Energy Efficiency Requirements in England & Wales

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

These Regulations introduce measures to improve the energy efficiency of certain private rented property in England and Wales.

It provides that, the landlord of a non-domestic private rented property must not grant a new tenancy of the property after 1st April 2018, and must not continue to let the property after 1st April 2023, where the energy performance of the property is below the minimum level.). It prescribes a minimum level of energy efficiency for private rented properties: that is, is an energy performance indicator (evidenced on the energy performance certificate for the property) of band E.

This legislation is triggered by new leases and lease renewals although not sales.

The exceptions are:

• Relevant energy efficiency improvements. This includes properties subject to a Green Deal agreement in place. The landlord of a sub-standard non-domestic private rented property has made all the relevant energy efficiency improvements for the property. This exemption is only allowed where there are no relevant energy efficiency improvements that can be made to the property.

• Consent exemption. When the landlord has, within the preceding five years, been unable to increase the energy performance indicator for the property to not less than the minimum level of energy efficiency as a result of either the tenant refusing consent or despite reasonable efforts by the landlord to obtain third party consent, that consent having been (i)refused, or (ii)granted subject to a condition with which the landlord cannot reasonably comply.

• Devaluation exemption. This paragraph applies where the landlord has not made a relevant energy efficiency improvement because the landlord has obtained a report prepared by an independent surveyor which states that making that relevant energy efficiency improvement would result in a reduction of more than 5% in the market value of the property, or of the building of which it forms part. 

• Short term lettings of 6 months or less and leases of more than 99 years.

• Temporary exemption. The regulations do not apply to a landlord until six months after the date on which the landlord becomes, or continues to be, the landlord of that property.

Where a landlord lets, or continues to let, a non-domestic private rented property in breach of regulation 27, that breach does not affect the validity or enforceability of any provision of the tenancy. 

Enforcement

It makes provision for the enforcement of the requirements of Part 3 by local authorities. A local authority can make a financial or publication penalty.

Landlords seeking to rely on a prescribed exemption when letting a private rented property which falls below the minimum level of energy efficiency must register that exemption on a register maintained by the Secretary of State. The landlord may request a review of the penalty notice by the enforcement authority and, where a penalty notice is confirmed on review, may appeal against the imposition of the penalty notice to the First-tier Tribunal. A further penalty can be imposed for further non-compliance. 

www.legislation.gov.uk/uksi/2015/962/contents/made

Metro Commercial specialise in producing Energy Performance Certificates for non-domestic property throughout the UK.

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