Feb

MEES Regulations: What you can do to prepare for the legislation deadline

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In 2018, the Government introduced new legislation to improve the energy-efficiency standards of properties in the UK’s private rented sector.

The Domestic Minimum Energy Efficiency Standard (MEES) now
states that all private rented properties must achieve a minimum Energy
Performance Certificate (EPC) grade of E, or higher. This means that landlords
who are currently renting out a property with an EPC rating of F or lower may
face a penalty charge of up £4000.

The legislation gives landlords until 1 April 2020 to either
improve the standard of any property they are currently renting out to a rating
of E or above – including existing tenancies – or to register
for an exemption, if applicable.

For landlords who are unsure how
they can improve their EPC rating, the looming deadline may seem daunting. Here,
we explain the details on the MEES compliance deadline and provide some tips to
help landlords check and improve their property’s EPC rating.

Hamilton Fraser’s guide, ‘New
energy performance certificate: Keeping your property green’, provides
further information about Energy Performance Certificates and how to find your
EPC.

What are the enforcements
and penalties?

The MEES Regulations are enforced by local authorities, who
have been granted a range of powers to ensure compliance. If a local authority
has reason to believe that a landlord has failed to fulfil their obligation to
comply with the MEES legislation by 1 April 2020, they can serve the landlord
with a compliance notice. If there is a confirmed breach of compliance, the
landlord could receive a financial penalty.

A compliance notice may request information about:

The EPC that was valid during the time the
property was let
The tenancy agreement used for letting the
property
Information about energy efficiency improvements
made to the property
Any ‘Energy Advice Report’ that was carried out
on the property
Other relevant documents

If a local authority confirms that a landlord’s property is
in breach of the regulations, they can be served with a financial penalty up to
18 months after the breach. Local authorities have discretion in deciding the
level of the penalty, up to the maximum allowed by the regulations.

The financial penalties for breaches of regulations are:

Up to £2,000 for renting out a non-compliant
property for less than 3 months
Up to £4,000 for renting out a non-compliant
property for 3 months or more
Up to £1,000 for providing false or misleading
information on the PRS Exemptions Register
Up to £2,000 for failure to comply with a
compliance notice

The maximum amount that a landlord can be fined is £5,000
per property. More information about enforcements and penalties can be found here.

What are the
exemptions?

Landlords may be exempt from the MEES regulations under
certain circumstances. These exemptions are based on circumstances where either
the improvements costs are too high; it would be unreasonable to expect a landlord
to prepare their property by the specified deadline; the landlord has made
reasonable efforts to make all the necessary changes and the property still does
not achieve the minimum rating; or if the modifications required for the
improvements would be considered detrimental to the property.

Listed exemptions for the MEES regulations are:

‘High cost’ Exemption – where the cheapest
recommended improvement would exceed a cost of £3,500
‘Seven year payback’ Exemption – where a
recommended measure would fail to make savings on energy costs over a period of
seven years
‘All Improvements Made’ Exemption – where all
necessary improvements have been made and the property remains sub-standard
‘Wall Insulation’ Exemption – where wall
insulation improvements are unsuitable for a property
‘Consent’ Exemption – where third party consent
is required for improvements
‘Devaluation’ Exemption – where improvements
would cause property devaluation
‘New Landlord’ Exemption – temporary exemption
due to recently becoming a landlord

More information about the MEES regulation exemptions can be
found here.

How can you check and
improve your EPC rating?

If you can’t find your EPC document or you’re unsure whether
your property has one, you can check the online register of issued EPCs for England and Wales, Scotland and Northern Ireland.

You are unable to rent or sell your property without a valid
EPC certificate, so if you do not have one you’ll need to book an assessment.
An assessment can cost up to £120 depending on the type of building, but for
most buildings, the price should be lower than this. When you’re ready to have
the energy efficiency standard of your property assessed, you will need to find
an accredited energy
assessor in your area.

In order to prepare for your assessment, you should have the
relevant improvements made to your property to make sure that you achieve an
EPC rating of E or above. EPCs give advice on what you can do to improve the
energy efficiency of you property, so if you already have an EPC that is a good
place to start.

Here is a list of key improvements that can help to improve
your EPC rating:

Replacing glass in windows and doors with double
or triple-glazing
Insulating the loft, walls and floors with
high-quality insulation
Replacing your old boiler with a newer, more
efficient model
Upgrading all light bulbs to LED light bulbs
Installing low-flush toilets and water-saving
showers
Replacing your older appliances with newer
models that come with ‘eco’
or ‘energy saving’ modes

By taking steps to make these improvements, you will increase your chances of achieving the minimum EPC rating of E before the MEES regulation deadline on 1 April 2020. For more advice on complying with landlord-related legislative changes, visit Hamilton Fraser’s legislation guide.

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