The new Minimum Energy Efficiency Standards (MEES) are being introduced next year and if you are a buy-to-let investor, you may be required to take action.
Over the last year or so, many experts have put out tips and reminders encouraging all landlords to take measures to ensure that their properties will comply with MEES.
The changes come into force from 1st April 2018 and at that point, it will be illegal to let or lease a residential or commercial property with a poor energy rating.
Buy-to-let landlords should now be addressing these upcoming changes to ensure that, depending on the volume of potential work necessary, the deadline to meet compliance with the regulations is met.
After the April deadline, properties that do not meet the minimum standards cannot be re-let until improvements are made. If the property is re-let, potential penalty fines of £5,000 for a domestic property and £150,000 for a non-domestic property could be levied.
The MEES were introduced with the aim of improving the energy efficiency of private rented properties. All buildings, domestic and non-domestic, in England and Wales are required to achieve at least an E rating on their Energy Performance Certificate (EPC) under the MEES scheme. This needs to be in place before they can be leased or rented.
If any improvement works have already been completed but they took place after the original EPC was issued, the property may already be up to the new standard required.
The government will be publishing detailed guidelines in October to clarify the new rules and the obligations of agents, landlords and others. This is expected to include news on a possible cap on improvements – an initial figure of £5,000 has been discussed, but not yet confirmed.
The rule applies to new tenancies and renewals only, but will be extended to existing tenancies by 2020. The Residential Landlords Association says it has now confirmed that listed buildings will be exempt, on condition that landlords have done as much as they are permitted to, to make them energy efficient.
Paul Carr Residential Lettings are working closely with our current, and future, landlords and we are busy advising them, if necessary, on the steps to take to ensure that they are compliant.
If you are currently a landlord, or are looking to rent your property, contact our Lettings Hub and find out all about our with you every step of the way service.