On 1st April 2018 MEES (The Minimum Energy Efficiency Standards) came into force. The aim being to ensure privately rented properties have an energy performance certificate (EPC) rating of band E or better.
As with most regulations, MEES has been implemented in phases, with two important dates left for you to consider:
From April 2020, properties in bands F and G (the lowest bands) will need improvement for you to continue to let them out in most cases.
Any properties that are let on a specific agreement, such as an assured tenancy and that require an EPC will need to comply with the regulations.
Most properties marketed (for sale or let) in the last ten years will legally have needed an EPC.
Therefore, it’s likely that all your properties will need to comply with MEES.
From 1st April 2018 landlords only needed to make energy efficiency improvements if grant money was available.
That all changed in April 2019.
From 1st April 2019 all properties let to new tenants (and prior to the renewal of existing tenancies) need to have an EPC rating of band E or better, unless you’ve been granted an exemption.
If a property has a band F or G rating you are liable to pay up to £3,500 to bring the property up to a band E rating or better.
If you spend £3,500 and the property still doesn’t reach that standard, you can apply for a high cost exemption. You won’t have to spend more than this amount. There are other exemptions available too which we will look at below.
All properties let out, including those tenanted prior to April 2018, will need to have an EPC rating of E or better.
Existing exemptions in place for landlords unable to fund energy efficiency improvements will end, meaning you will need to secure third-party funding or pay for any improvements needed yourself.
There will, however, still be certain exemptions that you can apply for. These include:
It’s time to review your EPC’s. Identify which properties don’t have an EPC rating of E or better, as they will need improvement prior to April 2020. Regardless of how long they have been let.
You don’t need consent from tenants to make the improvements so there’s no way around the regulations that way.
Start applying now if you think you qualify for an exemption. Most exemptions last for five years so there’s no need to wait. Financial penalties are in place, don’t delay and put yourself at risk.
If you have any existing exemptions in place, you should use the time between now and April to make sure that these will remain valid.
You can find out more about the regulations, including what’s classed as a recommend measure and how much each is likely to cost, here.
If you think your portfolio is particularly complex, or you just want to find out as much as possible, including more about exemptions (chapter 4), you can read the full 115-page Domestic Private Rented Sector Minimum Standard or download a copy for your legal team to review.
Property Deal Store is the place that connects the property sourcer to the property investor. Property deals are negotiated and packaged by property sourcers and then published on the website for purchase by property investors.
This is the platform the industry has been crying out for and we have created this website with a clear mission in mind: To be the go-to platform for investors to build a successful property portfolio whilst facilitating the development of a successful career in property sourcing for our sourcers.
We empower sourcers, leading to the delivery of quality stock, enabling investors of all sizes to build ethical, sustainable portfolios.
You can check out all of our latest deals here.
If you have any questions or simply want to find out more, call us on 01282 711561 or email firstname.lastname@example.org.
-Janice Minihan, director and co-founder of Property Deal Store