LANDLORDS are being warned that some of their properties could be rendered unlettable by new energy efficiency regulations coming into force.

The new lawns will bring significant changes and possible heavy fines, according to Ashley Gurr, commercial property partner at county law firm Kerwoods. "The changes are so far reaching that some properties may become unlettable," he added. "The aim of the new regulations is to improve energy efficiency standards across England and Wales. Exemptions will apply but anyone working in the rental sector needs to get on top of all this now.”

The Energy Efficiency (Private Rented Property)Regulations 2015, now in force, lay down minimum energy efficiency standards in the residential and commercial private rented sector. Landlords with properties with an EPC rating of less than “E” will need to carry out works to improve the energy performance of the building or face civil penalties. The regulations also make it unlawful for landlords of residential property to unreasonably refuse consent to a tenant's request to make prescribed energy efficiency improvements to properties. MEES applies to all properties required to have an energy performance certificate. For commercial property, it takes in all leases granted for more than six months and less than 99 years. For residential property, it affects all tenancies. From April 2018, where properties continue to be rated F or G, landlords will be banned from granting a new tenancy or renewing an existing one unless an exemption exists or relevant improvements have been undertaken.

Mr Gurr added: “Landlords will be exempt if third party consents are not available or if compliance would devalue the property. However lettings can still take place where the landlord can show that all possible cost-effective improvements have been carried out but the EPC rating is still below an E rating.”

Enforcement will be the responsibility of local authorities with penalties of up to £150,000.