THE NON-DOMESTIC PRIVATE RENTED PROPERTY MINIMUM STANDARD

Introduction
The Minimum Level of Energy Efficiency
The Regulations set out the minimum level of energy efficiency for private rented property in
England and Wales. In relation to the non-domestic private rented sector, Part 3 of the
Regulations contains the minimum level of energy efficiency provisions, which is currently set
at an energy performance certificate (EPC) rating of at least band E. As band E is a minimum,
landlords who are installing relevant energy efficiency improvements may also wish to aim
above and beyond the current requirement in order to achieve greater energy savings.
The minimum level of energy efficiency provisions will mean that, subject to certain
requirements and exemptions:
a) from 1 April 2018, landlords of non-domestic private rented properties (including public
sector landlords) may not grant a tenancy to new or existing tenants if their property has an
EPC rating of band F or G (shown on a valid Energy Performance Certificate for the
property).
b) from 1 April 2023, landlords must not continue letting a non-domestic property which is
already let if that property has an EPC rating of band F or G.
In both cases this is referred to in this guidance as the prohibition on letting sub-standard
property. Where a landlord wishes to continue letting property which is currently sub-standard,
they will first need to ensure that energy efficiency improvements are made which raise the
rating to a minimum of E. In certain, limited, circumstances landlords may be able to claim an
exemption from this prohibition on letting sub-standard property, this includes situations where
all improvements which can be made have been made, and the property remains below an E.
Where a valid exemption applies, landlords must register the exemption on the database set up
for this purpose – the PRS Exemptions Register. Full details of exemptions, and the
exemptions register, are set out in chapters 3 and 4 of this guidance.
The Regulations cross refer to, and interact with, other existing regulations, including the
Energy Performance of Buildings (Certificates and Inspections)(England and Wales)
Regulations 2007, the Building Regulations 2010 and the Energy Performance of Buildings
(England and Wales) Regulations 2012. PDFs of these related regulations can be found here 5 ,
here 6 and here 7 .
5 www.legislation.gov.uk/uksi/2007/991/pdfs/uksi_20070991_en.pdf
6 www.legislation.gov.uk/uksi/2010/2214/pdfs/uksi_20102214_en.pdf
7 www.legislation.gov.uk/uksi/2012/3118/pdfs/uksi_20123118_en.pdf
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