Worrying lack of knowledge on new energy efficiency rules – Minimum Energy Efficiency Standards or MEES
Introduced with the aim of improving the energy efficiency of private rented properties, MEES requires all buildings, both domestic and non-domestic, in England or Wales to achieve at least an ‘E’ rating on their Energy Performance Certificate (EPC) before they can be leased or rented. Landlords need to be prepared for the changes, which come into force from 1 April 2018.
Fresh research flags up the worrying lack of knowledge by landlords of the new energy efficiency rules which are due to come into force next year.
It seems that at least 25% of landlords are unaware of this and a further 42% are only ‘vaguely aware’ of it.
With less than 12 months to go until the new legislation comes into place, it is important that landlords put plans in place to ensure that their properties meet the required standards.
Failure to do so could have adverse legal and financial consequences, as after the April deadline properties that do not meet the minimum standards cannot be re-let until improvements are made. If owners re-let the property, they could face a penalty fine of up to £5,000 for domestic properties and £150,000 for non-domestic properties.
The first step is to verify the accuracy of any existing EPC report. EPCs may well have been rated incorrectly due to flawed assumptions made by the software or improvement works that will improve the EPC rating may have been carried out without the certificate being renewed. In some cases, this is all that will be needed.
With the clock ticking to implementation of the MEES standard on 1 April 2018, parties are well-advised to get to grips with how the MEES Regulations will affect their properties and the best strategy for compliance. Failing to understand the impact of the MEES Regulations on leases, lending conditions and on purchasing properties could lead to increased costs or non-compliance later.
The government published its long-anticipated Guidance for Landlords (PDF) on 23 February 2017. The Guidance for Landlords is designed to help landlords, freehold investors, lenders and enforcement authorities to prepare for the MEES Regulations.
