Are you concerned about the changes to energy efficiency regulations affecting
domestic rental properties?
What are the MEES and regulations?
Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, from the 1st April 2018, it is unlawful to let out domestic properties which have an Energy Performance Certificate (EPC) rating of F or G.
Why?
The regulations were put in place to improve the energy efficiency of privately rented homes and to meet UK targets of CO2 reduction under the Energy Act 2011.
Who does it affect and when?
From the 1st April 2018, the regulations will apply to landlords/property owners upon granting a lease to a new tenant,
or lease renewals to an existing tenant.
In order to comply, all properties must meet MEES by undertaking permissible, appropriate and cost-effective
improvements, unless exempt.
Properties which are let on tenancies of more than 99 years or less than 6 months, and some regulated tenancies such as
housing associations will be excluded.
The regulations will apply to all privately rented properties within the scope of the regulations from the 1st April 2020.
Are there any exemptions?
Landlords may be exempt when:
- The property is excluded from having an EPC
- Improvements are not cost-effective, either within a 7-year payback or under
the Green Deal - It has been independently verified that improvements may decrease the value of
a property by 5% or more - Third party consent cannot be obtained, for example, from planning authorities, Landlords can lodge exemptions on the PRS Exemptions Register from 2016.
What are the penalties?
Fines of up to £5,000 can be enforced, depending on the type of infringement and the length of non-compliance. A tenant can raise a case with the First-Tier Tribunal General Regulatory Chamber if they feel a landlord is non-compliant.
Tenants’ rights
From the 1st April 2016, tenants have the right to request reasonable and cost-effective improvements to their properties, as long as there are no up-front costs to the landlord.
Next steps
If you are an active DEA member and have clients who have interests in the privately rented sector, inform them
about the regulations and changes to energy efficiency standards.
Things to remember:
- They will need an EPC before the next time they let out a property
- EPC rating may have decreased since improved building regulations
- They must be able to achieve an E rating OR can achieve an E rating by 2018 if the rental terms are
changing, or likely to change