From April 2023, MEES (Minimum Energy Efficiency Standards) Regulations are changing. It is important that Landlord’s don’t get caught out with the new legislation.
MEES measure the energy efficiency of a building and are used to produce an EPC (Energy Performance Certificate).
Under current regulations property owners cannot grant a new tenancy on properties that have an EPC rating of F or G. This is to encourage Landlord’s and Tenant’s to take steps to improve the energy efficiency of their buildings. On the whole, it has been relatively easy to improve buildings up to that E rating and Landlords have been able to do it as part of their refurbishments when placing their properties on the market.
From 1st April 2023 however, property owners must not continue to let properties that have an EPC rating of F or G. This means that if you have an older EPC with a rating of F or G, that complied with regulations at the time of letting, you now need to take steps to improve that rating to E or above, you cannot wait until the time of reletting, as used to be the case. This will be a far more difficult exercise for landlord’s, who may not be able to carry out works around an operational tenant.
In addition, from 1 April 2025 it is likely that properties will need to have an EPC rating of C before being let increasing to a B rating by 1 April 2030. No legislation to that effect is yet in force but the UK Energy White Paper 2020 confirmed that this is likely to be the trajectory.
There are certain exemptions to the new regulations but it will be important to establish that exemption in plenty of time.
How strictly the above will be enforced is not yet that clear but the message certainly is – as a landlord – now is the time to take steps.
