From the 1 April 2018 there will be a requirement for any rented commercial and residential property to meet a minimum energy efficiency rating. Properties will need to have a minimum energy performance rating of E.
The minimum energy efficiency standard (MEES) will apply to new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies from 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption which must be registered.
Landlords need to consider and assess the energy efficiency of their properties and the impact of the MEES so as to meet their obligations under the regulations. There will be financial penalties applied for breaches of the MEES and the process of auditing properties needs to be completed well in advance of 1 April 2018.
According to a new study by AXA1, the private rental sector has seen a rapid improvement in energy efficiency over the past two years. The number of worst-rated properties has halved, and rentals come out better on boiler upgrades, insulation and smart meters than owner-occupied homes. Despite this, one in twenty rentals still breach minimum standards set to come into force next April.