Consultation on minimum energy efficiency standard for the private rented sector

Consultation on minimum energy efficiency standard for the private rented sector

On the 22 July 2014 the Department of Energy and Climate Change (“DECC”) published two important consultations on the private rented sector energy efficiency regulations (domestic and non-domestic properties). On the same date DECC published the reports to Government from the Non-Domestic Minimum Building Energy Performance Standards Working Group (“non-domestic working group”)  and the Domestic Private Rented Sector Regulations Working Group ( domestic working group”).

Both consultations close on the 2 September 2014 and DECC proposes to issue its response to the consultation and lay the regulations in early 2015 to provide the industry certainty on what the regulations will require.

Context

The Energy Act 2011 places of duty of the Secretary of State to bring into force regulations on minimum energy efficiency standards. Domestic and non-domestic private sector Minimum Energy Efficiency Standard Regulations must be in force by 1 April 2018.  This will mean that any property within scope of the regulations with an E or above rating will be in compliance with the regulations, and properties below this standard must install those measures required to reach an 'E' EPC rating. This is a critical issue for landlords with portfolios of private rented properties that may need energy improvements.

Domestic private rented sector Tenant's Energy Efficiency Improvement Regulations must be in force by 1 April 2016 and will empower tenants to request consent for energy efficiency measures that may not unreasonably be refused by the landlord.

Non-domestic private rented sector

The commercial property industry is a significant contributor to the UK economy   According to the IPCC the built environment contributes to just under 12 percent of the UK’s carbon emissions and this offers the greatest opportunity for cost-effective emission mitigation of any other sector. To achieve the legislative targets CO2 emissions need to be ‘close to zero’ by 2050.   Information on the EPC register shows that there are many opportunities to drive energy efficiency in existing stock. However, improvements have not been fully realized to date due to market, legal,

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About the author:

Melissa Moore is a dual qualified in England and Wales and South African lawyer and has 14 years’ experience in property practice in England. She has worked in local government and been a partner at a regional law firm and most recently an associate director at Berwin Leighton Paisner which she joined in 2005. Melissa has wide experience in all areas of property law and specializes in commercial real estate development. She has experience in a number of sectors including hotel, leisure, offices, investment, industrial, motorway service stations and funding. She has worked on large scale strategic developments and government funding initiatives, town centre regeneration schemes and private mixed use developments both for public sector and private developers and investment funds. In 2013 she was ranked by Legal 500 as recommended for local government work.