Private Sector Housing Civil Financial Penalty Policy
Financial penalties for a breach of minimum energy efficiency standards (MEES) with respect to domestic privately rented property
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 ("the Regulations") make it unlawful to rent out a domestic property if it has an EPC (Energy Performance Certificate) rating of F or G (unless a valid exemption has been registered on the PRS Exemptions register).
- the Regulations make it unlawful to fail to comply with a compliance notice served by the Council.
- the Regulations cover all relevant properties, even where there has been no change of tenancy.
- the Regulations were introduced to improve the energy efficiency of housing in the private rented sector and to reduce greenhouse gas emissions and tackle climate change. They should help make tenants' homes more thermally efficient.
- an energy performance certificate (EPC) gives the property an energy efficiency rating - A rated properties are the most energy efficient and G rated are the least efficient. It's valid for 10 years and must be provided by the owner of a property, when it is rented or sold.
- if you are a landlord and you fail to provide an EPC at the start of a tenancy, you will be in breach of the Regulations.
An EPC contains information about the type of heating system and typical energy costs. It also gives recommendations about how the energy use could be reduced, lowering running costs. You can find the recommended energy efficiency improvements on the current EPC.
If you're a private landlord, you must either;
- ensure your rented properties have an EPC with a minimum 'E' rating
- register a valid PRS exemption on the PRS exemptions register
Failure to do either of these is a breach of the Regulations.
The Council investigates any potential breaches of the regulations. If the Council is satisfied that you are or have at any time in the 18 months preceding the date of service of the penalty notice, breached the Regulations, you may be subject to a penalty notice imposing a financial penalty. The Council may also impose a publication penalty.
The "publication penalty" means publication, for a minimum period of 12 months, or such longer period as the Council may decide, on the PRS Exemptions Register of such of the following information in relation to a penalty notice as the Council decides:
- where the landlord is not an individual, the landlord's name
- details of the breach of these Regulations in respect of which the penalty notice has been issued
- the address of the property in relation to which the breach has occurred, and
- the amount of any financial penalty imposed.
The Council will impose the following financial penalties:
- letting a property with an F or G rating for less than 3 months: £2,000
- letting a property with an F or G rating for more than 3 months: £4,000
- registering false or misleading information on the PRS exemptions register: £1,000
- failing to provide information to the Council demanded by a compliance notice: £2,000
The Council may not impose a financial penalty under both subsections (a) and (b) above in relation to the same breach of the Regulations. But they may impose a financial penalty under either paragraph (a) or paragraph (b), together with financial penalties under paragraphs (c) and (d), in relation to the same breach. Where penalties are imposed under more than one of these paragraphs, the total amount of the financial penalty may not be more than £5,000.