Minimum Energy Efficiency Standards deadline of the 1st April
From the 1st April 2018 MEES (Minimum Energy Efficiency Standards) will become law, which means landlords must ensure their rental properties meet the minimum standards.
What are the Minimum Efficiency Energy Standards (MEES)?
The legislation will require any private rented properties to have a minimum energy performance rating of E, with the scale running from A at the most efficient to G as the least. From the 1st of April 2018 you will not be able to issue a new tenancy, renew an existing tenancy or let a tenancy roll on to a periodic tenancy unless your EPC (Energy Performance Certificate) rating is E or above. All other existing tenancies then must follow suit by 1st of April 2020. If you do not have an EPC you will have to provide one to renew your tenancy. If your EPC is rated F or G you will be required to make improvements. Currently, EPC’s offer suggested improvements to increase the rating for the property. They vary in cost, from small improvements such as additional insulation to larger financial outlays such as double glazing or new boilers.
What are the penalties for landlords who are not compliant?
The penalty for renting out a property with an F or G rating will be a £4000 fine. It will be unlawful to rent out a property with a rating less than E, leaving some landlords at risk of not being able to rent their property out until improvements are made to meet the minimum standards.
There are some exemptions, but they must be agreed by and listed on the PRS Exemptions Register.
From the 1st April 2018 which tenancies do MEES apply to?
The MEES regulation applies to the following:
A new assured or assured shorthold tenancy
A renewed or extended tenancy
A statutory periodic tenancy following the end of a fixed term
From the 1st April 2020 which tenancies do MEES apply to?
All assured or assured shorthold tenancies.
Therefore, from 1st April 2020 all tenants will have to be provided a copy of a current valid EPC certificate.
We have been working with all our manged landlords to make sure they are compliant before 1st April 2018 and making sure all our landlords upon renewal have a valid EPC which has been provided to their tenants
The importance of making sure you comply with the new legalisation and that you can prove you have issued an EPC certificate where, and when, necessary is vital. It is important to remember that under the Deregulation Act 2015 if you have not served your tenant a valid EPC certificate when necessary you will not legally be able to enforce a section 21 notice to gain possession back of your property.