In 2015, the Energy Efficiency (Private Rented Property in England and Wales) Regulations 2015 were passed as part of the suite of reforms to implement in England & Wales through the EU Directive regarding minimum energy efficiency standards (MEES).
These MEES will come into force from October 2016 and will introduce fresh requirements that must be carefully examined when investing in UK property.
This article looks at the scope of the Regulations and identifies why it is important to review energy performance certificates (EPCs) at an early stage of any property transaction or as part of a property management strategy.
Minimum Level of Energy Efficiency Standards
Part 3 of the Regulations deals with the MEES and comes into force on 1 October 2016, subject to draft amendments which, if passed, will defer implementation until April 2017 for commercial properties and October 2017 for residential properties.
MEES requires that all UK private rented properties have a minimum energy performance indicator (as evidenced on the EPC) of at least band E (the bands run from A to G, with A being the most energy efficient).