MEES (Minimum Energy Efficiency Standard) regulations deadline just days away

With the coming of the MEES (Minimum Energy Efficiency Standard) regulations in April, letting agents, and indeed landlords themselves, will need to make sure that a property is reaching a minimum energy efficiency standard of “E” before it is marketed to let.

Checking out a rental property’s EPC rating is a relatively simply process that any agent or landlord can do instantly online. Providing the property has had an Energy Performance Assessment done within the last 10 years, (EPCs last for 10 years and usually cost between £70 and £100) the information is available from the MHCLG website

New regulations coming into force this April 1 mean that residential landlords and their agents are obliged to ensure that their rental properties meet the required rating before a new or a replacement tenancy is granted, or otherwise they will face heavy penalties.

The penalty for renting out a property on a new or renewal tenancy for any period of fewer than three months will be in breach of the MEES Regulations and will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000. After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000.

Also, in two years’ time, even with existing tenancies – 1 April, 2020 – it will become illegal for residential landlords to continue letting out a property if they have not addressed the issue of energy efficiency and ensured the property meets the minimum “E” EPC rating.

Another pressing reason for doing this is for mortgage renewals. Under the new mortgage regulations, underwriting standards for buy-to-let mortgage contracts, issued under the Bank of England’s Prudential Regulation Authority, new buy-to-let mortgages and renewals require proof that the property meets the minimum standard.

Mortgage lenders granting new finance deals will typically require properties to be revalued. If single rental properties or properties in a landlord’s portfolio do not meet the minimum MEES standards after April, value could be affected would possibly result in mortgage applications being turned down.

Find the EPC rating for a property instantly online using the property address here

At YOUR AGENT we have ensured that all our managed properties meet the required minimum standard. Great news not only for our landlord clients and tenants but for the environment.

MINIMUM ENERGY EFFICIENCY STANDARDS

As from the 1st April 2018 there will be a requirement for any properties rented out in the private rented sector must have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1st April 2018 and for all existing tenancies on 1st April 2020. It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an applicable exemption. A civil penalty of up to £4,000 will be imposed for breaches. 

For most landlords this will mean that they will no longer be able to rent out a property with a rating of F or G after April 1st 2018. As such landlords with properties in this EPC bracket should begin preparing now for April 1st. 

Where at any time on or after 1st April 2018 a landlord lets a privately rented property which is F or G rated on a current legally required EPC then energy efficiency improvements must be carried out to bring the property up to at least an E rating before the property is rented out, unless the landlord qualifies for an exemption and the exemption is registered on the Public Exemptions Register.

At YOUR AGENT we've worked closely with our landlord clients to ensure every single property we manage meets the required standard.