Minimum energy efficiency standards

In April 2018 the Minimum Energy Efficiency Standards came into force which means that generally a property cannot be let where the Energy Performance Certificate (EPC) rating is lower than E (although there are some exemptions). An EPC of E is the minimum acceptable standard and a rating of F and G is below standard.

Energy Performance Certificates (EPC)

Normally any property that has been marketed for sale or letting should have an Energy Performance Certificate. By law, landlords are required to provide their tenants with a copy of this. The EPC explains the energy efficiency of the property and typical energy costs as well as making suggestions of ways to reduce the amount of electricity and/or gas used.

If you do not know whether there is an EPC for your property or can’t find it, you should be able to find a copy of the certificate if there is one, by checking the EPC Register. You can also find details of government approved Domestic Energy Assessors.

What do landlords need to do

If you are letting a property you should make sure that there is an Energy Performance Certificate for the property and give a copy of this the tenant of the property.

If you currently let a property which has a rating below E (F or G) you must either:

carry out work to bring it up to an EPC rating of at least E
apply for an exemption

The law has set a maximum amount that a landlord is required to spend on improving the EPC rating which is £3,500.

Exemptions

There are some exemptions from the Minimum Energy Efficiency Standard. Landlords need to apply for an exemption and this will then be recorded on the Private Rented Sector Exemptions Register. If you plan to exempt a property you should apply to register this as soon as possible so that you do not breach the Minimum Energy Efficiency Standards.

What exemptions apply

For full details about the exemptions that may apply go to the gov.uk website. Exemptions include things like:

You have spent up to the cost cap of £3,500 (including VAT) and have still not been able to raise the rating of the property to E.
The cost of even the cheapest recommendation to improve energy efficiency up to a rating of E is more that £3,500 (including VAT).
The only option for improving energy efficiency is wall insulation and this is likely to harm the fabric or structure of the building.
You cannot get the consents that you need to carry out the improvements.
Any energy efficiency improvements are likely to reduce the overall value of your property by more than 5%.

Generally, exemptions only last for 5 years at a time. There is also an exemption if you have recently become a landlord (in certain circumstances) but this only last for 6 months.