New consultations to raise energy efficiency standards in buildings in England and Wales

In the UK, different systems of property law operate in each jurisdiction (England & Wales, Scotland and Northern Ireland). While some legal concepts are similar, there are plenty of distinctions to navigate and to catch out the unwary. Generally, the law and rules relating to property matters are the same in England and Wales. However, the devolution of government in the UK has gradually led to a number of changes and a growing and evolving body of Welsh law.

In England and Wales, minimum energy efficiency standards (MEES) for landlords in the private rented sector have been in force since 1 April 2018. These provide that, with some exclusions and exemptions, a landlord cannot grant a new – or renew an existing – tenancy of a property if it does not have an EPC rating of E or higher. Since 1 April 2020, private sector residential landlords have not been able to continue to let a sub-standard property. Landlords of commercial premises with tenancies already in place on 1 April 2018 must comply from 1 April 2023.

The UK Government recently issued four consultations to raise the energy efficiency bar by introducing:

• a framework for a minimum EPC B rating for privately rented non-domestic buildings in England and Wales by 2030;
• a minimum EPC rating of C in the domestic private rented sector, the preferred option being to require new tenancies to achieve a C rating from 2025 and all tenancies from 2028;
• a national performance-based framework for rating the energy and carbon performance of large commercial and industrial buildings; and
• improvements to home energy performance through mortgage lenders.

Consultation responses are “currently being analysed” in each case, so we should expect further developments during the course of 2022.