THE ENERGY EFFICIENCY DIRECTIVE
Rob Legge, CEO & Bob Foley, Strategy Director of Energy & Compliance, for Servest Group discuss the implications of the pending energy efficiency directive and how to prepare your property.
Two summers ago, the Department of Energy and Climate Change (DECC) released their consultation on proposed Minimum Energy Efficiency Standards (MEES) for privately rented property. In March 2015, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 passed into law.
From April 2018, private landlords letting domestic and non-domestic properties will need to ensure their properties reach an EPC (energy performance certificate) rating of E
34 | INDUSTRY INSIGHT
or better, before granting a tenancy to new or existing tenants. This will apply initially to all new leases, renewals and lease extensions. Having opted for a phased introduction, which includes some initial exemptions, this soft start for all new leases will be followed by a hard backstop of 2023 for all existing leases.
WHO DOES THIS AFFECT? Out of the UK’s 1.8 million non-
domestic buildings, two thirds are rented. With average lease lengths
identified in the Government’ Impact assessment as 4.1 years for SMEs and 5.2 years for larger companies, this suggests over a quarter of a million leases are granted, extended or renewed each year and will fall under these regulations from April 2018.
Once the regulations come into force, it will be unlawful to rent a property that breaches the requirement for a minimum E rating, unless there is an applicable exemption. If landlords fail to comply, civil penalties of up to £10,000 or 20% of rateable value,
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