Part 4 in our series on “Compliance made simple.”
As property investors and letting agents, we are regularly having conversations with people about compliance. What often comes across is that people find it changeable and confusing. It is changeable, this is true, but it needn’t be confusing. With this in mind, we have put together a series on some of the most common compliance issues, in an attempt to explain them, in a way which is succinct and non-confusing. The fourth in this series is all about MEES (Minimum Energy Efficiency Standards)
EPC (Energy Performance Certificate) and MEES (Minimum Energy Efficiency Standards)
The Regulations:
The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations came into force on 1st October 2008. They lay out the guidelines for energy efficiency regulations on all rental properties. These regulations have undergone several changes since 2008, the latest being on the 1st April2020.
Minimum Energy Efficiency Standards or MEES (The Energy Efficiency [Private Rented Property] [England and Wales] Regulations 2015) state that from 1st April 2020, all landlords of privately rented domestic and non-domestic properties, in England and Wales, must ensure that their properties have at least an Energy Performance Certificate rating of E.
MEES does have exceptions (e.g. listed buildings) but they must be officially sanctioned by the council.
Requirements & Duties:
All Landlords letting a property need to provide a valid EPC certificate to any prospective tenant. The EPC must be accessible to prospective tenants from the point the property starts to be marketed.
There is no need to obtain a new certificate for each tenancy and once obtained an EPC remains valid for up to 10 years, regardless of the number of tenancies in that period.
Penalties:
The penalty for renting out a property for a period of fewer than 3 months in breach of the MEES regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum of £5,000 and a maximum of £50,000.
After 3 months, the penalty rises to 20% of the rateable value, with a minimum of £10,000 and a maximum of £150,000.
NB: There is a government proposal to change the minimum EPC rating, for all private tenancies from 2025 to a C. It is proposed that all newly rented properties will require an EPC rating to be a minimum of a C from 2025 and all existing tenancies will have until 2028 to comply.
The aim of the regulation is to make homes more energy efficient and to reduce carbon emissions as part of the Government’s target to net zero by 2050.
As Landlords and Investors ourselves, we can help and advise on all aspects of your portfolio. If we can help you then give us a call on 0117 440 6789 or email us here together we can make being a landlord simple, passive and stress free!