Dave Green Energy Services

Minimum Energy Ratings from 2018

The Dept for Energy and Climate Change have confimed that "From 1 April 2018, private domestic and non-domestic landlords will need to ensure that their properties reach at least an E Energy Performance Certificate (EPC) rating, or have installed those improvements that could be funded using available finance or subsidies available to pay for them, before granting a tenancy to new or existing tenants"

At the moment domestic landlords will not be expected to provide up front finance to upgrade their properties.

To gain an exemption from the requirement they will have to show that funding is not available, this may require an application to the Green Deal Finance company. 

If full funding is available through GDFC or ECO or similar and;

a, the measures are not adversly affecting a historic property, or

b, a surveyor has not recommended the measures are not applied, or

c, the tenant has not refused a Green Deal loan, 

then they will have to be carried out.

It is up to the landlord then how to finance them, they could then use a Green Deal loan (whereby the tenant repays the loan) raise the money elsewhere or use their own funds. 

However the Government is consulting on introducing a maximum investment for landlords on upgrading their properties.  The current suggestion is that this would be £2,500 (inc VAT & any grants obtained) which would come in April 2019, but exemptions gained up to then on grounds of 'no funding available' might then be null & void. A higher limit of £5,000 is also possible. 

Non domestic landlords will have to bear some up front costs if the measures show a reasonable pay back period. 

We can provide EPCs & tailored MEES reports for  rented properties

showing;

- what the current rating is, 

- the easiest ways to get the property to an E rating,

- plus ideas for further action,

- the savings that these measures should produce,

- details of any funding available,

-and how to claim exemption from the regulations if the measures are too costly or are unadvisable for the property. 

Government guidance to the regulations and how they apply to both domestic and non domestic properties can be found here 

https://www.gov.uk/government/publications/the-private-rented-property-minimum-standard-landlord-guidance-documents


and the current consultation document here 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/669198/PRS_Minimum_Standards_Consultation_2017.pdf

These requirements will then apply to most private rented properties, including occupied properties - from April 2020 in the domestic sector and from April 2023 in the non-domestic sector.

​If you are unsure how this requirement will affect you or want to discuss our tailored MEES service, then do get in touch.

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