Minimum Energy Efficiency Standards
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 set out the requirement for domestic private rented properties in England and Wales to have a minimum Energy Performance Certificate (EPC) rating of E.
- From 1st April 2018, landlords were prohibited from granting new tenancies for properties with an EPC rating below E. This included extensions and renewals of existing tenancies, or a tenancy becoming a statutory periodic tenancy following the end of a fixed term shorthold.
- From 1st April 2020, the restriction on landlords letting out sub-E rated properties is extended to cover all existing tenancies for properties in scope of the regulations.
In Rotherham, it has been estimated that approximately 4% of the private rented sector stock has an Energy Performance Certificate (EPC) rating less than E.
The council is responsible for enforcing Minimum Energy Efficiency Standards (MEES) Regulations and is investigating any potential breaches of the MEES regulations. The onus is on the landlord to ensure that the property meets the MEES standards.
If a private sector landlord continues to rent a property with an EPC rating of F or G, a Compliance Notice and a Penalty Notice can be issued to the landlord, with a maximum penalty of £5000.
Alongside the MEES Regulations, the Housing Act 2004 gives Local Authorities the power to enforce minimum Housing Standards in the private rented sector using the Housing Health and Safety Rating System (HHSRS).
The EPC rating of a property cannot be considered in isolation. Even if a property meets an EPC rating of E, landlords will need to provide adequate heating and thermal comfort. The Council can prosecute or issue penalties of up t £30,000 when hazards including excess cold are identified in a property and not rectified.
Further information for landlords
Guidance on PRS Exemptions
Zero-rate VAT for the installation of energy saving materials
Landlords facing the need to upgrade their properties, to reach an EPC rating C by 2028, will be able to take advantage of zero-rate VAT for the installation of materials improving a property's energy efficiency from April 2022.