Tag Archive: mees

Minimum Energy Efficiency Standards (MEES) Changes: what you need to know and why

Minimum Energy Efficiency Standards (MEES) Changes: what you need to know and why

This month, we are focusing on the changes in MEES legislation, which were effective from April 1 2018. Here, our Residential Lettings Consultant, Simon Harrison and Senior Project Manager, Rob Hamilton answer some key questions…

MEES

In a nutshell, what’s changing?

“It’s now law to ensure a property that’s let out, for residential or commercial use, must meet a Minimum Efficiency Standard,” explains Simon. “A sub-standard property is one that fails to meet an Energy Performance Certificate (EPC) rating of E.”

“EPCs have always come with a list of recommendations to help you improve the energy efficiency of your property.” adds Rob. “Until now, there has been no policy to enforce these changes, meaning the EPC was only advisory. However, this is no more. The new MEES regulations mean landlords will be unable to let out a property, or renew an existing tenancy or lease, if the property fails to meet the E rating. Those landlords with properties with an F or G rating will have to carry out improvement works, benefiting the property’s utility costs, the tenant, and the environment.”

How does this affect landlords of residential and commercial property?

“It affects them quite seriously,” says Rob. “A tenanted property cannot be lawfully re-let to new or existing tenants until sufficient measures are taken to improve the performance of the building to an EPC rating E or above. There are instances when the building may be exempt from these regulations; such as if the building is listed, or a temporary structure, but it is always best to check with a qualified assessor.”

“If a landlord does let out a home or business premise that is rated below the minimum standard,” explains Simon, “Then they will face civil and criminal charges for signing a new tenancy or renewing an existing one. Given that one in 10 privately rented properties currently fail to meet the new efficiency rules it’s important that landlords seek advice and are guided through the changes so that it doesn’t negatively impact their investments.”

Putting yourself in the shoes of a North East landlord, what would you be doing now?

“I would be definitely checking my current EPC to make sure it is E rated or above and speaking to my current letting agent to find out how they can help and support me through this change, in the best way for my interests,” said Simon. “Yes, I agree,” states Rob. “I would initially be checking that I have current EPCs available for all of my properties; EPCs are valid for 10 years from issue. You are then able to highlight which of your properties may be affected. In fact, in many cases, ensuring that the original information that was used to carry out the assessment was accurate, can bring the EPC rating up without having to carry out any remedial works to the property.”

If I was a landlord that hadn’t thought about this issue or looked into it, what would you suggest I do as a priority?

“I’d probably speak to a local ARLA letting agent to seek guidance on what I should be doing to ensure that I don’t accidentally fall foul of the new legislation,” explains Simon. “Yes, that’s right, I would contact a qualified property consultant or perhaps an EPC assessor to fully understand my obligations under the new ruling,” said Rob. “Penalties for non-compliance range up to a maximum of £150,000, which is pretty huge, so it’s essential that your property is let in line with the new regulations.”

On the whole, what’s the current situation like with landlords you’re working with about the changes? Are they quite prepared or are you having to do lots of work with them?

It’s quite worrying, actually, the number of commercial landlords that are not aware that these regulations are being introduced,” expresses Rob, frankly. “George F. White is working with landlords across residential and commercial sectors about the new law, so we’re really well placed to assist landlords in ensuring their compliance, whether that’s carrying out new EPCs, scrutinising their existing EPC, or consulting on necessary remedial works.”

“On the residential side,” explains Simon, “We’ve been speaking to all landlords who are at risk of flouting the new laws and, working very closely and transparently with them, we have developed a tailored plan specific to their portfolio and investments. This has involved either organising a new EPC, arranging a Green Deal Assessor visit, or registering exemptions where applicable. Now really is the time to switch focus to the new energy efficiency laws and ensure you’re not doing anything illegal that can result in a hefty fine.”

If you’d like to discuss this further with Simon or Rob, please do contact them on the details below or visit our EPC information page:

Simon Harrison
Rob Hamilton

Commercial Minimum Energy Efficiency Standards (MEES)

George F. White are offering a service to help achieve regulatory compliance (Minimum Energy Efficiency Standards or MEES)  in regards to your Commercial Energy Performance Certificate (EPC). You may be aware of these regulations but may not be aware of the implications or indeed the potential interventions you can make to ensure the ongoing viability of your property as a rental asset.

EPC MEES

What are Minimum Energy Efficiency Standards (MEES)?

The Energy Efficiency (England and Wales) Regulations 2015, or MEES, is part of a drive to improve the energy efficiency of privately rented residential, commercial and industrial buildings across the UK.

Building Regulations will ensure that any new properties constructed meet current standards however, the MEES ensure that older, poorer performing buildings are improved. MEES apply to properties with an EPC rating below an F or G.

 

How are MEES being Introduced?

The regulations are being introduced in a staged approach to ease the transition for private landlords. It is important to consider that the EPC threshold is likely to rise in future.

 

From April 2018:

Domestic and non-domestic buildings that do not meet the minimum requirements cannot be lawfully re-let to new or existing tenants. Sufficient measures will improve the performance of the building to an EPC rating E or above.

 

From April 2023:

Landlords must not continue to let a non-domestic property holding an EPC rating of below an E.

 

Penalties for Non-Compliance…

Penalties for non-compliance in the form of financial penalties are based upon the rateable value (RV) of the property.

The enforcement authority may also publicise the breach through various media platforms.

 

Time Period

Penalty

Less than 3 Months up to 10% of the RV of the property or £5,000 (whichever is the greater) up to a maximum of £50,000
Beyond 3 Months up to 20% of the RV of the property or £10,000 (whichever is the greater) up to a maximum of £150,000

Exemptions and Exclusions 

Buildings are exempt for a number of reasons including not being required to hold an EPC  in addition too a lease term less than 6 months or a lease term in excess of 99 years.

Landlords are exempt from mandatory improvements if:

▪ An independent assessor shows that energy improvements will not payback within 7 years;
▪ The landlord is unable to gain third party consent either from tenants, superior landlords or where planning permission is required from the local planning authority;
▪ If the market value of the property will reduce by more than 5% as assessed by an independent assessor.

Exemptions can be registered with the PRS Exemptions Register and if agreed will only last for 5 years.

 

Please note that you have 6 months to improve your EPC rating to at least an E in addition to considering future improvements.

 

Contact our experts today for advice.

Andrew Rollo07545920905
Robert Hamilton07885 556849

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