Private rented sector energy efficiency

The PRS regulations apply to the non-domestic private rented sector in England and Wales.

Non-domestic private rented properties are defined in the Energy Act 2011 as any property let on a tenancy, which is not a dwelling.

PRS will include a number of safeguards to ensure that only permissible, appropriate and cost effective improvements are required under the regulations. Landlords will be eligible for an exemption from reaching the minimum standard where they can evidence that one of the following applies:

• The measures are not cost-effective
• Despite reasonable efforts, the landlord cannot obtain necessary consents to install the required energy efficiency improvements, including from tenants, lenders and superior landlords
• A relevant suitably qualified expert provides written advice that the measures will reduce a property’s value by 5% or more
• Wall insulation required to improve the property will damage the property

From 1 April 2018, the regulations will apply upon the granting of a lease to a new tenant, and, a lease to an existing tenant.

From 1 April 2023, the regulations will apply to all privately rented property in scope of the regulations, including where a lease is already in place and a property is occupied by a tenant.

Local authorities will enforce the provisions, and there will be a compliance and penalty notice process put into place to enforce the regulation.

As with ESOS, Remeha condensing boilers are a very cost effective measure and could improve a building's EPC rating where they are replacing older, inefficient boilers.

You can find out more about the government’s PRS legislation here.