DAC Beachcroft Real Estate Advisory Alert Tip of the Week: At Last it's Here – Minimum Energy Efficiency Consultation
Published 4 August 2014
The Department of Energy and Climate Change has issued the long awaited consultation on Private Rented Sector Minimum Energy Efficiency Standard Regulations (Non-Domestic) (England and Wales). This contains proposals to bring into force regulations to satisfy the requirement in the Energy Act 2011 to introduce a minimum energy efficiency standard (MEES) for non-domestic property.
The government proposes to set the MEES at an EPC E rating and says "properties below this standard must install those measures required to reach an E EPC rating". If a property falls below the MEES a landlord will not be able to let it (subject to certain exemptions).
The consultation contains a raft of questions for the real estate industry that address issues such as:
- The building/lease type that should be caught by the regulations;
- Should landlords be required only to make improvements that can be made at no net or upfront cost?
- The possibility of an exemption where the "improvements" decrease the value of a property;
- Exemptions where third party consents cannot be obtained, on lease renewals and extensions;
- The method by which the Government should introduce the regulations – hard, soft or phased.
The regulations, when made, have the potential to cause considerable impact on transactions involving energy inefficient buildings in the non-domestic sector.
The consultation ends 2 September 2014, don't miss your opportunity to have your say, click here.