Real Estate Tip of the Week - Non-Domestic PRS Energy Efficiency Standards: Shining a light on the Proposed Framework

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Real Estate Tip of the Week - Non-Domestic PRS Energy Efficiency Standards: Shining a light on the Proposed Framework

Published 13 May 2021

On 17 March 2021 the Department for Business, Energy & Industrial Strategy issued a consultation on the proposed framework to improve the implementation and enforcement of the non-domestic private rented sector minimum energy efficiency standards: EPC B implementation. The proposed framework seeks to address concerns around compliance and enforcement from the 2019 consultation paper on improving energy performance.

The proposals include:

  1. Requirement on building owners and single tenants to obtain a performance based rating annually and to publicly disclose that rating online;
  2. Requirement to disclose this rating to prospective tenants or occupiers;
  3. The introduction of a calculator to standardise purchase and installation costs of energy efficiency measures.
    These requirements will apply to all commercial and industrial buildings in England and Wales above 1,000m². Although these only account for 7% of all non-domestic buildings, they account for over half of the total energy used and carbon emitted in this building category.

Existing penalties under the PRS Regulations include a maximum fine of £150,000. Under the proposals, additional penalties may be imposed on landlords for non-compliance with the framework, such as fines up to £5,000. Local authorities may also have the right to request permission to inspect properties to ensure enforcement.

This new framework seeks to provide accountability in the non-domestic private rented sector for properties in-situ and new developments. If successful around one million non-domestic buildings should be improved by 2030, which supports the Government’s overarching strategy to reduce carbon emissions and ensure it meets its net zero target for the UK by 2050.

Amendments to the PRS Regulations are set to come into force on 1 April 2025. If you have any questions on how these changes may impact your business, please don’t hesitate to get in touch.

Authors

Lucy Beach

Lucy Beach

Bristol

+44 (0)117 918 2545

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