The Energy Efficiency Regulations 2015 will bring into force minimum energy efficiency standards (MEES) for the residential private rented sector. This means that from 1 April, landlords with properties to let which have an Energy Performance Rating (EPC) of less than 'E' will have to carry out works to improve the EPC to a rating of E or above, or face penalties of up to £4,000.

The regulations will also make it unlawful for landlords to unreasonably refuse consent to a tenant's request to make prescribed energy efficiency improvements to a property. However, the tenant is responsible for paying for the works and the intention is that no upfront costs should fall on the landlord, unless they agree to contribute.

Tenants will have the right to request energy efficiency improvements whether or not the property has an EPC rating, though the minimum standard E rating for letting applies only to properties with an EPC (and will not apply to Listed property). But there are some instances in which a landlord can refuse permission for improvements to be made, including:

•Another tenant made a request within the preceding six months and the landlord complied.

•The improvement is the same, or substantially the same, as one which the landlord proposed within the preceding six months but which the tenant refused or failed to respond to.

In addition, a landlord can make a counter-proposal by putting forward alternative energy efficiency measures. If this happens, the tenant must consent to those works before they can be carried out.

Further measures will come into effect under The Energy Efficiency Regulations 2015 in 2018, when it will become unlawful to grant new tenancies with an EPC rating of less than E; and in 2020 when this will apply to all residential tenancies (both new and existing).

MEES apply to all residential properties required to have an EPC and to all tenancies let under Assured Tenancies, Assured Shorthold tenancies and Rent Act tenancies. However, lettings can go ahead where the property does not require an EPC; or in the following three exemptions which will allow landlords to let properties which do not meet the required minimum E rating:

•Cost effectiveness – where all possible cost-effective improvements were carried out but the EPC rating remains below an E rating. 'Cost effective improvements' are those that have been installed with a Green Deal.

•Third party consents – where consents from a third party, such as a lender, freeholder or sitting tenant, for the improvement works were denied, or were provided with unreasonable conditions.

•Reduction of market value – where carrying out the works would reduce the market value of the property by more than five per cent, as evidenced by a qualified independent surveyor.

An exemption will last for up to five years and must be pre-registered on a central register for a landlord to rely on it.

Best advice for landlords with an F or G rating is to review the most recent EPC, consider what energy efficient improvements are advised on the EPC and then carry out the works between now and 2018.

Furthermore, where work has recently been carried out to a previously low-rated property, the EPC should be renewed because the rating is likely to have improved to E or above. In any event an EPC must be renewed after 10 years.

Over time the minimum energy efficiency standard is likely to rise above the minimum E rating which means that landlords should also consider whether it is worth doing more than the bare minimum and implement works to improve any buildings that also fall within ratings C and D.

Further information

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