Introduction
The Minimum Energy Efficiency Standards (MEES) are regulations that apply to domestic private rented sector properties in England and Wales. As of April 2020, landlords must ensure their properties achieve a minimum Energy Performance Certificate (EPC) rating of ‘E’. Renting out properties with an EPC rating of ‘F’ or ‘G’ is unlawful unless a valid exemption is registered. Non-compliance can result in civil penalties up to £4,000.
Scope of MEES Regulations
MEES regulations apply to:
- Properties let under an assured tenancy or shorthold tenancy.
- Tenancies regulated under the Rent Acts.
- Properties let under:
- Assured agricultural occupancy.
- Protected tenancy under the Rent Act 1976.
- Statutory tenancy under the Rent Act 1976.
Properties must meet the following EPC requirements:
- A valid EPC is required when selling or letting a property.
- Flats and houses are subject to these regulations.
- Self-contained units like individual flats require an EPC, but non-self-contained units, such as bedsits, do not.
If a bedsit is part of a property that already has an EPC, the regulations apply before renting out the bedsit. EPCs are valid for 10 years.
Prohibition on Letting Substandard Properties
A property is considered substandard if:
- It has an EPC rating of ‘F’ or ‘G’, unless a valid exemption is registered.
- Landlords are prohibited from letting such properties.
Important Notes:
- Energy efficiency improvements must be made to achieve at least an ‘E’ rating unless an exemption applies.
- Non-compliance does not affect the validity of tenancy agreements, but landlords may face enforcement actions.
Exemptions
Landlords may register exemptions under specific circumstances, including:
- All cost-effective improvements (up to the £3,500 cap) have been made, but the property still does not meet the ‘E’ rating.
- Third-party consent (e.g., from tenants or planning authorities) cannot be obtained.
- Improvements required would devalue the property by more than 5%.
Exemption Registration:
- Exemptions must be registered on the PRS Exemptions Register and are typically valid for five years.
Penalties for Non-Compliance
Non-compliance penalties include:
- Renting out a non-compliant property for less than 3 months:
- Fine up to £5,000 or 10% of the property’s rateable value (maximum £50,000).
- Renting out a non-compliant property for 3 months or more:
- Fine up to £10,000 or 20% of the property’s rateable value (maximum £150,000).
- Providing false or misleading information or failing to comply with a compliance notice:
- Fine up to £5,000.
Landlords can:
- Request a review of the penalty notice.
- Appeal to the First-Tier Tribunal if necessary.
Recommendations for Compliance
Steps for Landlords:
- Commission a new EPC: Obtain a current EPC to assess the property’s energy efficiency rating.
- Follow EPC recommendations: Implement measures in the order they appear on the EPC to achieve the desired score.
- Implement cost-effective measures first:
- Install LED light bulbs (1-3 points).
- Add a hot water tank jacket (0-6 points; aim for 120mm thickness).
- Install thermostatic radiator valves (1-4 points).
- Be cautious with electric heaters: Only high heat retention storage heaters on a dual-rate tariff (e.g., Economy 7) will likely improve the EPC.
Grants and Assistance
Landlords can explore funding options to improve energy efficiency, such as:
- Energy Company Obligation (ECO): Funding for measures like cavity wall and loft insulation.
- Local authority schemes and grants.
- Flexible Eligibility: Criteria that open up grants to a wider range of tenants.
Need Help?
Contact Ridgewater Energy for assistance:
- Phone: 01202 612726
- Email: info@ridgewaterenergy.co.uk