From April 1st 2018, it will be unlawful to grant new leases of residential or commercial property with an EPC rating below an 'E'.
The Energy Efficiency Regulations 2015 will bring into force minimum energy efficiency standards (MEES) in the residential and commercial private rented sector.
Please watch our explainer video to help you understand the following points:
- What are the MEES?
- What are the key dates for the new regulations.
- Are there any penalties for non compliance?
What are the minimum energy efficiency standards, otherwise known as the MEES?
Under the Energy Efficiency regulations 2015 for Private Rented Property in England and Wales, it will be unlawful to agree a new lease for a domestic or commercial property with an EPC rating of F or G
Which properties are affected by the MEES?
On the 1st April 2018 these standards apply to landlords or property owners on all new lettings and lease renewals, and the property owner will need to ensure that the property meets MEES before the lease is granted.
However, on the 1st April 2023 MEES will apply to ALL Commercial and Domestic privately rented properties.
Is your property exempt from MEES?
Your property will be exempt from the new standards, if you have…
A) Already carried out any energy efficiency improvements
B) an independent surveyor has identified, that the requirements are not cost effective. For example, changes to the property that can devalue the property by 5% or more, or can potentially raise the EPC rating to above F.
C) Found it difficult to obtain third party consent, despite reasonable effort, to make the required changes to comply with the MEES. A third party could mean a tenant, landlord or planning authority.
Are there any penalties if your property does not comply with the MEES requirements?
If you miss the deadline, after 3 months or less from April 2018, you will be issued with a penalty to an equivalent of 10% of the property’s rateable value. Beyond July 2018 this penalty will increase to 20%.