Whether building, renovating, or letting it is important to know what the legal and expected energy efficiency requirements are needed for your property.

The government is continuously working on processes and procedures to meet environmental agendas such as lowering carbon emissions and waste. As such, builders and property investors are obligated to meet certain standards for their properties.

Domestic Private Rentals

The Domestic Minimum Energy Efficiency Standard (MEES) Regulations are in place to set a minimum energy efficiency level for domestic private rented properties. This applies to properties on assured tenancies, regulated and domestic agricultural tenancies, and those requiring a valid Energy Performance Certificate (EPC).

Since April 2020, Landlords have been required by law to ensure their property has a minimum EPC rating of E or above, unless a valid exception is in place. If the rating is below this level it is a requirement to bring the establishment up to standard before entering into a new tenancy, or if the property is let, take steps to improve the rating immediately.

Options for funding these improvements, such as third-party funding can be found on the government website under Domestic private rented property: minimum energy efficiency standard - landlord guidance.

Non-residential Rentals

In the case of non-domestic properties, the EPC rating limits above still apply, however, responsibility does not always fall directly on the landlord to make or fund the improvements. According to RICS “Where a landlord is granting a new lease he/she may wish to incorporate drafting into the service charges expressly allowing energy-efficiency improvements in the future” (RICS 2024).

Third-party funding resources are not available for energy improvements on non-domestic private rented property.

New Developments

New build properties are also under the same EPC requirements as existing buildings. The benefit for new builds however is that they are designed with energy efficiency in mind.

As such “New build homes are consistently rated with much higher EPCs than existing dwellings. Data from the Office for National Statistics finds that the average existing property in England has an efficiency score of 67 – equivalent to an EPC rating of D. In contrast, homes built from 2012 onwards had a score of 83 – equivalent to an EPC rating of B” (HBF 2023).

How to improve an EPC rating

There are many ways to improve the energy efficiency of existing buildings and new homes. This can include, but is not limited to:

Solar panels
Loft insulation
Cavity wall insulation
Switch lighting to LED
Heating controls such as Nest systems
Double glazing.

Standards are being updated all the time, with additions and new schemes being introduced every year.

Onyx Property Finance are experts in providing financial solutions for property developers. We are dedicated to keeping on top of market trends and ensuring our customers are kept informed of any changes that might affect their borrowing, projects, and investments – see our blog for all the latest insights.

Speak to an expert today and get up to 100% of your purchase and build costs with fixed interest rates for the lifetime of your loan: info@onyxmoney.co.uk.