MEES 2018

As of April 2018 there exists a new legal standard that will apply to landlords who are actively renting out property.  These are known as Minimum Energy Efficiency Standard (MEES).  Freehold investors, lenders and developers also need to be aware of these standards and know that they bring opportunities as well as threats.

EPC Bromley can assist Landlords who have portfolios which contain properties that do not meet the required standards.  Our Property Energy Efficiency Improvement Report can identify which measures will improve a property’s rating as well as showing the cost effectiveness of each option.

Please Contact Us  if you need advice on how to get your property’s energy efficiency rating up to the required standard.

MEES Basics

MEES was developed to improve the energy efficiency of the ageing housing stock in the UK.

The country has tough targets in place to reduce carbon emissions by 2020 and 2050 and whilst the latest Building Regulations ensure that newly built properties are up to standard, the Minimum Energy Efficiency Standards ensures that the existing housing stock is also reviewed.

At this stage the regulations state that as of April 2018 no existing tenancies can be renewed nor new tenancies signed unless the property in question has an EPC rating of at least ‘E’.

Property Exemptions

  • Any properties that are currently not required to have an EPC
  • Any tenancies that have less than 6 months to run (with no renewal rights)
  • Tenancies that are 99 years or more.

Technical Exemptions

  • Recommended improvements must pay for themselves in the form of energy savings after a maximum of seven years.  If not, the property is exempt through what is known as the ‘Golden Rule’.
  • If the improvements would result in the devaluation of the property by at least 5%.
  • Consent.  If consent for the improvements are not given by the tenant, superior landlord or the local authority.

If any of the above apply then they must be registered on the PRS Exemptions Register.

Penalties for Non-Compliance

If a landlord is found to have been in breach of MEES for up to three months then a fine of 10% of the property’s rateable can be applied (minimum £5,000 through to a maximum of £50,000).

If a landlord is in breach of MEES for more than three months this can increase to 20% (minimum £10,000, maximum £150,000).