Tuesday, March 14, 2017

Non-domestic Energy Efficiency Regulations

The Government have published the guidance document on the Energy Efficiency Regulations for PRS landlords of non-domestic rental property in England and Wales.

From April 2018, private non-domestic (and domestic) landlords must ensure that properties they rent in England and Wales reach at least an EPC rating of E before granting a tenancy to new or existing tenants. 

These requirements will also apply to all private rented non-domestic properties – including those properties where there has been no change in the tenancy arrangements from April 2023.

The document provides guidance and advice on:

Scope of the regulations: the steps a landlord should take to determine whether their property is covered by the regulations, and the steps they should take to ensure their property complies with the minimum level of energy efficiency.

Relevant improvements: how a landlord can identify appropriate energy efficiency improvements for their property;

Cost effectiveness: how a landlord can calculate whether particular improvements would be cost effective to install;

Exemptions and exclusions: the exemptions framework and the steps a landlord should take to register a valid exemption;

Enforcement: the enforcement framework and the options open to enforcement authorities when policing compliance with the minimum standards, including information on fines and other penalty options;

The appeals framework: landlord appeals will be heard by the First-tier Tribunal, part of the court system administered by Her Majesty’s Courts and Tribunals Service; the guidance discusses the steps a landlord will need to take to lodge an appeal, and how that process will be run.

Where a landlord believes that an F or G EPC rated property they rent qualifies for an exemption from the minimum energy efficiency standard, an exemption must be registered on the PRS Exemptions Register. Further information on this will be available shortly.

Separate guidance to domestic private landlords on complying with their obligations under the minimum standard regulations will be published in due course.

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