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Energy Performance

Landlords in England and Wales are legally required to ensure that rental properties meet minimum energy efficiency standards before they can lawfully be let.

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 introduced the Minimum Energy Efficiency Standards (MEES), which prohibit landlords from letting properties with inadequate Energy Performance Certificate (EPC) ratings unless a valid exemption applies.

Failure to comply can result in substantial financial penalties, enforcement action by local authorities, and restrictions on letting the property.

Minimum EPC Rating Requirements

Most privately rented residential properties must have a minimum EPC rating of:

• E or above.

Properties falling below this standard are commonly referred to as “sub-standard properties”.

When the Rules Apply

From 1 April 2018

The minimum EPC requirements began applying to:

• New tenancies; and
• Renewal tenancies.

From 1 April 2020

The regulations were extended to cover:

• All existing residential tenancies.

This means landlords are generally prohibited from continuing to let sub-standard properties unless an exemption has been validly registered.

Prohibition on Letting Sub-Standard Properties

Landlords must not grant or continue a tenancy where:

• The property has an EPC rating below E; and
• No valid exemption applies.

This restriction applies to most privately rented residential properties that legally require an EPC.

EPC Requirements Before Letting

Before marketing or letting a property, landlords are generally required to:

• Obtain a valid EPC;
• Ensure the EPC is provided to prospective tenants; and
• Ensure the property meets the minimum energy efficiency requirements.

An EPC is normally valid for:

• 10 years.

Failure to provide an EPC may also impact compliance with wider tenancy obligations and prescribed requirements.

PRS Exemptions Register

Where a landlord cannot lawfully carry out the required energy efficiency improvements, an exemption may apply.

However, exemptions are not automatic.

Landlords seeking to rely on an exemption must register the exemption on the:

• PRS Exemptions Register.

Supporting evidence must also be uploaded to support the exemption claim.

Common EPC and MEES Exemptions

Consent Exemption

An exemption may apply where necessary consent cannot be obtained.

Examples include:

• A tenant refusing access or consent for improvement works;
• Planning permission being refused;
• Mortgage lender consent being refused;
• Third-party consent being subject to unreasonable conditions.

In many cases, landlords must demonstrate reasonable efforts were made to obtain consent.

Cost Exemption

A cost-based exemption may apply where:

• The required improvements exceed statutory cost caps; or
• No suitable funding or financial assistance is available.

Landlords should retain evidence of quotations, assessments, and funding applications where relying on this exemption.

Devaluation Exemption

An exemption may arise where a qualified surveyor confirms that carrying out the recommended energy efficiency improvements would reduce the market value of the property by a specified amount.

All Relevant Improvements Made Exemption

Landlords may also qualify for an exemption where:

• All relevant energy efficiency improvements have been carried out; and
• The property still does not achieve an EPC rating of E.

Penalties for Non-Compliance

Local authorities are responsible for enforcing MEES regulations and possess significant enforcement powers.

Landlords who breach the regulations may face:

• Financial penalties of up to £5,000 per breach;
• Publication of breach details on public registers;
• Enforcement notices requiring compliance.

Penalties may vary depending on:

• The nature of the breach;
• The duration of non-compliance; and
• Whether false or misleading information has been provided.

Appeals Against Penalty Notices

Landlords may appeal a penalty notice to the First-tier Tribunal.

Appeals must generally be made within:

• 21 days of the penalty notice being served.

Grounds for Appeal

Common grounds for appeal include:

• The decision was based on an error of fact;
• The local authority misapplied the law;
• The penalty notice failed to comply with statutory requirements;
• The penalty is unreasonable or disproportionate in the circumstances.

The Tribunal has the power to:

• Confirm the penalty;
• Quash the penalty; or
• Vary the penalty amount.

Additional Energy Efficiency Responsibilities

In addition to EPC compliance, landlords should ensure that rental properties meet wider energy efficiency and safety standards.

Heating and Insulation

Landlords should ensure properties contain:

• Adequate heating systems;
• Appropriate insulation;
• Efficient hot water systems.

Poor thermal efficiency may contribute to damp, mould, condensation, and disrepair issues.

Gas and Electrical Safety

Energy efficiency obligations operate alongside wider statutory safety requirements, including:

• Gas safety obligations;
• Electrical safety requirements;
• Smoke alarm and carbon monoxide alarm obligations.

Reasonable Energy Efficiency Improvements

Landlords should consider taking reasonable steps to improve energy efficiency, including:

• Installing double glazing;
• Upgrading boilers;
• Improving loft or cavity wall insulation;
• Replacing inefficient heating systems;
• Installing energy-efficient lighting.

Improved energy efficiency can reduce tenant energy bills and improve property desirability.

Why EPC and MEES Compliance Matters

Compliance with EPC and MEES regulations is increasingly important for landlords.

Ensuring compliance can help landlords:

• Avoid financial penalties and enforcement action;
• Reduce the risk of tenant complaints and disputes;
• Improve tenant satisfaction;
• Increase property marketability;
• Reduce long-term energy costs;
• Improve environmental sustainability.

As energy efficiency standards continue to evolve, landlords should regularly review their properties to ensure ongoing compliance.

Future Changes to EPC Standards

Landlords should remain aware that future governments may introduce stricter minimum EPC requirements.

There have been ongoing discussions regarding increasing the minimum EPC standard for privately rented properties beyond band E in future years.

Landlords should therefore consider long-term improvement planning where properties currently only narrowly satisfy the minimum standard.

Contact Landlord Advice UK

If you require advice regarding:

• EPC requirements;
• MEES compliance;
• Exemption registration;
• Penalty notices;
• Tribunal appeals; or
• Energy efficiency obligations,

Landlord Advice UK can provide professional guidance to help ensure your property remains compliant and protected from enforcement action.

[1] The Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015 and s.39 Deregulation Act 2015.

[2] Regulation 5 Energy Performance of Buildings (England and Wales) Regulations 2012 SI 2012/3118.