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Landlords: Do You Comply With The New MEES EPC Regulations?

 
 
 
 
  12 Apr 2018

Now that we are into April, the Minimum Energy efficiency Standards regulations apply, and these can have serious implications for landlords. It is now unlawful for landlords to offer new tenancies for a property that holds an Energy Performance Certificate (EPC) rating of an F or G. There are some exemptions to this but generally, any landlord wanting to offer a new tenancy or renew a tenancy needs to hold an EPC rating of E or better.

Landlords should also be aware that by 2020, these regulations will apply to all tenancies, including existing tenancies, so even if a landlord is not currently affected by the regulations, they may be impacted upon in the future. Therefore, it is essential that all landlords review their EPC rating and ensure that their property is of a suitable standard.

Landlords should look to improve EPC rating of property if they can

There are obviously strong benefits to improving the EPC of a property. With a stronger EPC rating, the property is likely to be in better condition and its ability to retain heat and warmth better will help to lower energy bills, which is something that most tenants will be happy to benefit from.

Exemptions include:

  • Where the EPC is older than 10 years
  • If the landlord has been unable to obtain third party consent for work to be carried out
  • If an independent surveyor has deemed that property improvements to meet MEES would lower the property value by more than 5%

There are penalties for landlords that don’t comply with MEES

It is important that landlords are aware of the penalties that could be imposed for failing to comply with these regulations. Failure to comply with a Compliance Notice could see a landlord fined up to £2,000 and receive a Publications Penalty, which would require the landlord to register their information on the PRS Exemptions Register, which is otherwise known as the Publications Penalty This information will remain on the register for at least 12 months.

If the landlord has been in breach of regulations for a period of more than three months, the maximum fine rises to £4,000. The maximum level of penalty that can be imposed on a property is £5,000.

With these regulations now in place, findings from a recent study undertaken by a leading energy firm are slightly concerning. It was found that 25% of landlords are unaware of the MEES regulations and 42% of respondents admitted to being “only vaguely aware” of these rules. Other concerning responses included:

  • 27% of respondents saying they didn’t know what EPC rating their property held
  • 49% of landlords saying they were unaware of the penalty for regulation breaches
  • 31% of landlords underestimated the penalty associated with regulation breaches

At Jezzards, we understand that many landlords feel under pressure to stay in touch with regulations. Given the penalties that could be imposed for failing to comply with MEES, it is only natural for some landlords to feel concerned or worried about these latest changes. If you are keen to stay in touch with these regulations, and all the regulations which impact on your ability to serve as a landlord, stay in touch with Jezzards. We aim to provide you with dependable support and guidance that will allow you to operate in an efficient and effective manner, so get in touch with our residential lettings team on 03330 433 633.


Author

Jezzards Estate Agents

9-11 High Street Hampton TW12 2SA United Kingdom (033) 3043 3633 email (020) 3725 3022 Hampton TW12 2SA, Surbiton, Surrey, KT6 7AB


 

 

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