Are you a landlord or agent wondering how MEES will affect you and your property which came into effect on 1 April 2018?
MEES in a nutshell
From the 1st April 2018, landlords may not grant a tenancy to new or existing tenants if their property has an EPC rating of band F or G
From the 1st April 2020, landlords must not continue letting a relevant domestic property which is already let if that property has an EPC rating of band F or G (as shown on a valid Energy Performance Certificate for the property).
Learn more at GOV.UK.
Key dates
1 April 2016 – Domestic tenants have the right to request energy efficiency improvements. Landlords cannot refuse this.
1 April 2018 – It will be unlawful to grant new tenancies or leases on residential or commercial properties with an EPC rating of F or G.
1 April 2020 – ALL domestic buildings requiring EPCs must achieve at least an E rating, even when a tenancy agreement is already in place and the property is occupied.
1 April 2023 – ALL non-domestic buildings requiring EPCs must achieve at least an E rating, even when a lease is already in place and the property is occupied.
2025 onwards – The minimum standard is likely to rise to a D rating by 2025 and a C rating by 2030.
What does this mean?
As of 1 April 2018, a landlord or owner must ensure their property meets the MEES requirements before a new lease or tenancy is granted.
This will involve making improvements to the building to improve the energy efficiency to an E rating or better.
What are the penalties?
Domestic – Up to £5,000 fine.
Non-domestic – Linked to the rateable value of the property, potentially as much as £150,000 fine.
Why is this being enforced?
To ensure tenants live or work in an energy efficient building.
Living in private rented accommodation significantly increases the likelihood of a household being fuel poor, so much so that around a third of all fuel-poor households in England live in the private rented sector, despite the sector accounting for only around a fifth of all households in England and a seventh of the households in Wales.
Amongst EPC F and G rated properties in the sector, recent data shows that 45% of households are classified as fuel poor. Put simply, the PRS has a disproportionate share of the UK’s least energy-efficient properties and fuel-poor households. Installation of energy efficiency measures can help address this.
While tenants will benefits in terms of reduced energy bill spend, or through increased warmth, comfort and the associated health benefits, energy efficiency improvements also benefit landlords. When the Regulations were being designed, a number of landlords associations identified a range of benefits for landlords including increased tenant satisfaction and reduced void periods; reduced long-term property maintenance costs; and making properties more attractive and easier to let.
The table below shows the average annual Energy Bills across the EPC bandings:
Are there any exemptions?
The majority of buildings achieving an EPC rating of F or G will be required to register, however, there are some exemptions…
- Buildings which are not legally required to have an EPC
- Buildings let on leases or tenancies under 6 months OR over 99 years
- If certain wall insulation systems cannot or should not be installed
- If all relevant improvements don’t improve the rating above an F or G
- If no improvements can be made to achieve an E rating or better
- If the improvements do not meet the 7 year payback rule
- If you cannot get consent to make the improvements
- If the improvements will devalue the property by more than 5%
- If you have been a landlord for less than 6 months
Where a landlord wishes to continue letting property which is currently sub-standard, they will need to ensure that energy efficiency improvements are made which raise the EPC rating to a minimum of E. In certain circumstances landlords may be able to claim an exemption from this prohibition on letting sub-standard property; this includes situations where the landlord is unable to obtain funding to cover the cost of making improvements, or where all improvements which can be made have been made, and the property remains below an EPC rating of Band E.
Where a valid exemption applies, landlords must register the exemption on the national PRS Exemptions Register.If a landlord or owner has an exempt property, they (or their agent) must register it on The PRS Exemptions Register
Advice for improving an F or G rating
If your property has an EPC rating of F or G, then from 1st April 2018, the property will fall short of the Minimum Energy Efficiency Standard.
If you want detailed expert advice on the most cost-effective improvements you can make to achieve an E or better, this can be provided by the energy assessor who carried out the EPC for a fee of £30 per property.
This fee is for our time to remodel (in the EPC software) the various energy efficiency improvements available to you, and offer our suggestions on the most cost-effective solutions to help you achieve a better EPC rating.
We cannot advise on the exact costs of the works. You should seek independent quotations from a builder / plumber / electrician etc.
Revisit (if required)
If you make the suggested improvements to your property, before the EPC is lodged on Landmark’s central register, then a revisit will be required. The same energy assessor can come to your property again to inspect the works for a fee of £30 per property.
Please contact us now if you require assistance or advice on how to improve your properties efficiency.
Do the EPC Changes Affect Current Tenancies or Just New Lets?
The 2018 rules only apply to new tenancies, but in 2020, the same rules will apply to all tenancies.
April 2018 Changes
After April 2018, if your minimum term ends, but you still have a contract in place, the rules won’t suddenly apply to your tenancy. Even if your last rating was below an E, you will be ok as long as you don’t renew your tenancy. After your minimum term expires, your tenancy can run on as a periodic tenancy.
April 2020 Changes
In April 2020, the new MEES rules will apply to all existing lets. At this point, you will need an EPC rating of an E or above to let your property at all. Even if your tenancy is already underway and you have no plans to renew, after April 2020, you will need to have an EPC rating of E or above or you could face fines.
What Should I Do If My Rental Property Has an EPC that Is Lower than an E Rating?
If your last EPC rating was below an E, the first thing to do is to get an up-to-date EPC carried out. EPC calculations are changing all the time and it is possible that you will receive a different rating to the one you got several years ago. If the property’s new EPC rating is still below an E, then you will need to make efficiency improvements to improve your rating before you let it out or renew your contract.
Please speak to us if you are unsure about how to proceed with any improvements. After the energy efficiency changes have been made to the property, you will then need to get another EPC to show the new energy rating.
Exemptions to New EPC Rules
There are some exceptions as to which properties must comply with the new regulations. These will only apply in a small number of cases. If one of these apply, you can register for an exemption on the central register, which was launched in October 2017.
- Devaluation: The required improvements will either cause damage or reduce the value of the property by 5% or more.
- Consent: It is not possible to gain the consent for the works to be completed required from the tenant, lender or superior landlord.
- Cost: The identified improvement measures are not cost-effective, either within a seven year payback, or under the Green Deal’s Golden Rule.
Southern Domestic Energy Assessors Limited 