First it should be noted that the responsibility will lie with the landlord/owner and cannot be delegated if the property is let out. There will need to be an assessment of the property portfolio and which is classified as residential and which is classified as commercial as this will dictate the timescales.

It also should be noted that there are exemptions in place, for example commercial leases under 6 months or over 99 years do not require an EPC to be given to a tenant. Commercial properties also have the following exemptions:

1. Seven-year payback: where a landlord can show that the cost of implementing a recommended improvement is greater than the expected energy bills savings over seven years.
2. All improvements made: where all the recommended energy efficiency improvements have been made to the property but the EPC remains below E.
3. Consent: where implementing a recommendation requires the landlord to first get consent from a third party, such as the local authority or superior landlord.
4. Devaluation exemption: where an independent chartered surveyor advises that the installation of specific energy efficiency measures would reduce the market value of the property by more than 5%.

Note any of the above exemptions must be registered on the PRS Exemptions Register by the landlord and will only be valid from the point of registration. Exemptions cannot be transferred to a new owner or landlord.

The EPC will set out the possible works required to improve the energy efficiency level but it is wise to obtain a full report to provide all options together with looking at cost savings and costs of implementation. Some options will simply not be viable for example air source heat pumps require a very high level of existing energy efficiency to function properly.

Non compliance can lead to fines of up to £150,000, the size of fine will depend on the rateable value of the property and the length of the breach of MEES.

Energy efficiency measure should be one part of an overall estate strategy, the property and land are the biggest asset of an operator and the challenge comes from both ensuring its compliance with regulations alongside ensuring that use is maximised both for generating income as well as cost saving.

All operator should have a full set out estate strategy dealing with:

• An assessment of the land and buildings as to the legal restrictions of use and any barriers to future sales/alternate use.
• A breakdown of all parcels of land with potential options to generate income.
• A comprehensive long term energy strategy both in terms of steps to reduce energy costs and improve energy efficiency as well as looking at long term energy security through renewable generation methods.