From 1 April 2020, the minimum energy efficiency standard (MEES) is extending to all existing tenancies. Here’s what you need to know.
Since April 2018, new tenancies in England and Wales have had to meet the Government's minimum energy efficiency standard (MEES).
From 1 April 2020, the minimum energy efficiency standard (MEES) is extending to all existing tenancies. Here’s what you need to know.
Since April 2018, new tenancies in England and Wales have had to meet the Government's minimum energy efficiency standard (MEES). Properties which require an energy performance certificate (EPC) must reach a minimum ‘E' rating on their EPC assessment, or have a valid exemption registered.
So, what tenancies does this affect?
From 1 April 2020 the prohibition on letting properties with an EPC rating of F and G will be extended to cover all relevant properties, even where there has been no change of tenancy. Landlords with properties assessed at EPC F and G must now improve the property rating to E or register an exemption if they want to continue to let it.
I applied for an exemption in 2019, is that still valid?
The validity of all existing exemptions registered on the basis that the landlords could not get any funding for energy efficiency improvements will end for individual properties on 31 March 2020, instead of after five years. Landlords who had registered such exemptions prior to 1 April 2019 will now be required to make improvements (up to £3,500) to ensure their properties achieve EPC E by 1 April 2020 – unless a further exemption is successfully applied for.
What if the cost of improving to an ‘E’ is higher than £3,500?
The £3,500 cap is an upper ceiling, not a target or a spend requirement and landlords may spend more if they wish. If a landlord can improve their property to E (or higher) for less than £3,500 then they will have met their obligation.
If the upgrade to EPC E cannot be achieved for £3,500 or less, then landlords must make all the improvements that can be made up to the cost limit, and then register for an ‘all improvements made’ exemption.
Landlords can install any energy efficient measures providing they are on the governments list of ‘recommended energy efficiency improvements’ if not, landlord are unable to let the property or register an ‘all improvements made’ exemption.
Are there any exemptions?
There are various exemptions that apply to the prohibition on letting a property with an energy efficiency rating below E. If a property meets the criteria for any of the exemptions, landlords will be able to let it once they have registered the exemption on the Private Rented Sector (PRS) Exemptions Register.
Details on the exemptions available and how to apply can be found on the Government's website
here.