Introduction

Landlords of residential property could face high fines if they do not meet the latest energy efficiency standards. From 1 April 2020, it became unlawful for landlords to continue domestic residential tenancies where the property has a rating of F or G on its Energy Performance Certificate (EPC).

Regulations

The Minimum Energy Efficiency Standards require an E rating or above for all domestic tenancies. From 2023, this will also apply to all commercial tenancies. Non-compliance could result in enforcement action and fines of up to £5,000.

Exemptions

Exemptions may be provided if the landlord has undertaken recommended measures up to a cap of £3,500 but still does not meet the E rating. Another exemption route is if any recommended upgrade option would exceed £3,500. Exemptions last for five years.

Historic Properties

Properties listed for historic purposes may be exempt if necessary works would alter the character or appearance of the building. It is advisable to get an EPC and consult a local conservation officer for confirmation.

Tenant Improvements

Tenants can undertake energy improvements with landlord consent, even if there are lease restrictions. Landlords can only refuse on reasonable grounds.

Conclusion

Landlords should check their property portfolios and undertake necessary work to comply with the latest energy standards or register an exemption. Government funding support is available.