Minimum Energy Efficiency Standards – April 2018 (Updated with remaining provisions of the (MEES) come into force on 1 April 2020.
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 established the MEES which set a minimum energy efficiency level for all domestic private rented properties in England and Wales that are required to have an Energy Performance Certificate (EPC). Where this applies, and the property has an EPC rating of F or G, landlords must take appropriate steps to comply with the requirements of the MEES regulations.
From 1 April 2020 this 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. At this point all Landlords with properties assessed at EPC F and G are now required to improve the property rating to
IMPLICATIONS OF MEES 2018
MEES 2018 is going to impact Private Rental Sector Landlords significantly.
- It will make some properties illegal to let unless they are upgraded to meet the minimum standards. It is estimated that approximately 20% of non-domestic properties are in the 'F' and 'G' rating brackets.
- Valuations of such properties could be affected if their marketability is diminished.
- Rent reviews for properties in this situation could also be affected.
- Implications for dilapidations assessments may also exist.
WHAT CAN YOU DO
Firstly, we suggest that if you will be impacted by MEES 2018 you should contact us so we can help you to identify the potential risk to your assets. There is a high likelihood that the minimum energy standards being implemented in 2018 will be raised in the future and Government is committed to implementing this policy going forward.
We suggest you take the following immediate actions:
- All property assets need to have a valid EPC this is a legal requirement.
- Where the EPC rating is 'F' or 'G' (or is at risk of becoming so) an "Energy Efficiency Plan" should be put in place to improve the energy efficiency of the property. This should include assessing the costs and benefits of improving energy efficiency and weighing these against other impacting factors within the business plan for the property.
- Energy efficiency improvements should take advantage of void periods, lease breaks and/or be included as part of the on-going maintenance and renewal programme.
HOW BEECH PROPERTY MANAGEMENT CAN HELP?
Beech Property Management can provide a full compliance service, including:
- Advice upon the legislation and its implications for your assets.
- Assess current energy efficiency and energy performance risk across your portfolio and for individual assets.
- Produce a bespoke risk management plan (“Energy Efficiency Plan”) for your buildings to implement any necessary energy efficiency improvements, aligned with the building life cycle.
- The Energy Efficiency Plan will include fully costed investment grade proposals for achieving the minimum standards required.
- Negotiate with landlords/tenants regarding the completion of energy efficiency projects.
- Procure and manage any necessary improvement works.
- Provide energy performance reports and ratings for statutory compliance and for marketing purposes.