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ARTICLE · 29 NOVEMBER 2016

New Minimum Energy Efficiency Standards for Landlords

The Energy Efficient Regulations 2015 will come into force on 1 April 2018.

United KingdomReal Estate and Construction

The Energy Efficient Regulations 2015 will come into force on 1 April 2018. They set out a new minimum energy efficiency standard and require landlords of private rented property in England and Wales to achieve a performance rating of at least 'E' on their Energy Performance Certificate. The Regulations only apply to the letting of private property, not to sales, but have already begun to substantially affect the future of certain rental properties in England and Wales.

Commercial Properties

Under the new rules, a landlord will not be able to grant a new tenancy of a property that has an EPC rating below an 'E'. Furthermore, from 1 April 2023, the Regulations will apply to all existing lettings, not just new tenancies. This means if you do not improve your 'F' or 'G' rated properties, you will be in breach of the Regulations if you allow existing leases to continue after 1 April 2023.

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