Minimum Energy Efficiency Standards

January 4, 2018 10:58 am Published by

The New Year will come with a new regulation for commercial and residential properties. This will bring about both threats and opportunities for current landlords, investors, lenders and developers. In fact, over 400,000 properties in England and Wales will be ‘unlettable’ for failing to meet the performance standards, so fast action must be taken. To find out more, please read on.


At the moment, all commercial buildings have an energy efficiency rating between A – G, with F and G being the lowest. As of April 2018, the minimum rating must be an E. Consequently, properties cannot be let and tenancies cannot be renewed unless this standard is met. If landlords fail to improve their energy efficiency, there will be possible fines worth thousands of pounds.


Currently, around 18% of commercial properties in the United Kingdom have a rating of F or G. These properties are huge contributors to Greenhouse Gas emissions and landlords will have to invest in improvements before April. Some landlords may qualify for exemptions from the new rule, which must be registered on the Public Exemptions Register. These exemptions will be valid for 5 years and cannot be passed on to a new landlord. Do your research to find out whether or not liable.


If you aren’t exempt from the new rule, there are many ways to improve the energy efficiency of a property. These include the installation of low-energy LED lighting and smart home technology, as well as the addition of window and door seals to prevent drafts.


This new regulation has come as a surprise to many but has been introduced as a means to meet the 2020 and 2050 carbon reduction targets. In fact, the new minimum standard could rise again in the future. 

Categorised in:

This post was written by Dennis Adam

Comments are closed here.