As from 1 April 2018, Minimum Energy Efficiency Standards (MEES) will apply to domestic and non-domestic private landlords in England & Wales.
The new rules will make it illegal for landlords to sign a new lease for certain properties with an energy performance certificate (EPC) rating of F and G.
Landlords of properties with sub-standard EPC ratings must take steps to improve their property’s EPC rating or risk a fine.
If no new tenancy is entered into, landlords may continue to let domestic properties until 1 April 2020 and non-domestic properties until 1 April 2023, after which all rental properties will need to comply with MEES.
What types of tenancies are covered by these Regulations?
The domestic tenancy types covered are assured tenancies, regulated tenancies and agricultural tenancies. For more information about how the regulations apply to non-domestic tenancies, download this guide.
What funding is available?
Landlords will only be required to make energy efficiency improvements for which they can obtain ‘no cost’ finance from one or more of the following sources:
- Green Deal Plan;
- Energy Company Obligation (ECO) Scheme, or similar; or
- Local Authority funding.
Are there any exemptions?
Yes, there are certain circumstances in which a landlord can legally let a property with an EPC rating of F or G:
- Where all relevant energy efficiency improvements have been made and the EPC is still below an E rating;
- Where improvements that could be made would not pay for themselves through energy savings within 7 years;
- Where the relevant energy efficiency improvements, if made, would reduce the market value of the property by 5%; or
- Where consent from persons such as a tenant, a superior landlord or planning authorities has been refused or has been given with conditions with which the landlord cannot reasonably comply.
In these cases, the landlord must register the exemption on the central government PRS Exemptions Register. Exemptions are valid for five years only and cannot be transferred to a new landlord.
Download this leaflet to read more about how MEES will affect domestic landlords.
Improve and invest
According to SAP calculations, tenants could save over £1,000 per year if their EPC is improved from a G to an E rating, but it’s not just tenants who will benefit from raised energy efficiency standards. Landlords will benefit from any improvements made according to government research, which shows that rented properties with better energy efficiency are a third less likely to have empty periods than those with sub-standard ratings.
Our Level 3 qualification in energy efficiency for heating will ensure installers have the correct knowledge and skills to help landlords meet MEES. Find out more, here.
When it comes to heating and hot water, energy efficiency isn’t the only thing landlords need to be up to speed with - safety is also of the utmost importance too. To help landlords and those responsible for managing their properties keep abreast of gas safety in particular, Logic Certification offers gas safety awareness and management courses, for both private and social housing. As well as Gas Auditing qualifications for the businesses that carry out gas work in residential premises.