What will MEES mean for landlords?
Do you or your landlords have properties with an Energy Performance Certificate (EPC) lower than a grade E? If so, changes to the law will affect you.
Minimum Energy Efficiency Standards (MEES)
EPCs are required by law on all properties for sale or rent. The graph that currently shows how efficient the building is has grades from A-G, with G being the least efficient. As of April 2018, a landlord or property owner cannot grant a new tenancy on a property with an EPC rating below an E. It is estimated that 20-25% of properties in England and Wales will have this low ranking. In addition, as of April 2023 all privately rented properties will be required to meet MEES.
Why is MEES being enforced?
Part of The Energy Act 2011, MEES aims to improve the energy efficiency of the most energy inefficient properties. It also contributes to the UK legislative targets of reducing CO2 emissions for all buildings to around zero by 2050.
- Where a property has already had all cost effective energy efficiency improvements carried out (typically defined by a payback period of seven years or less).
- If consent to undertake works is refused by a third party such as a local authority or a tenant.
- A suitably qualified expert provides written advice that the works would result in a devaluation of the property by 5% or more, or that the works would damage the property.
- Exempt properties will need to be lodged on the PRS exemptions register.
- From April 2018, a landlord cannot grant a new tenancy of the property with an EPC rating below an E.
- From April 2020, a landlord cannot rent any property with an EPC with a rating below an E.
- From April 2023, the regulations will apply to all privately rented properties in scope of the regulations, including where a lease is already in place and a property is occupied.