Landlords: Changes to EPC ratings are coming, are you prepared?

What are the new Regulations?

The Minimum Energy Efficiency Standards Regulations (MEES) set out the minimum level of energy efficiency for properties in England and Wales.

From 1 April 2018, it will be unlawful for landlords of non-domestic private rented properties to grant a new lease to new or existing tenants if their property has an energy performance certificate rating (EPC) of band ‘F’ or ‘G’.

From 1 April 2023, MEES will be extended to cover all leases including where a lease is already in place. This means it will be unlawful for landlords to continue letting a property which is already let if that property has an EPC rating of band F or G.

The regulations will also apply to sub-lettings and assignments.

Why should landlords be concerned?

MEES will have significant impacts for landlords including:

• Penalties of up to £150,000 and further ongoing fines for subsequent failure to comply with the enforcement action;
• Publication of the details of breaching the MEES;
•  It will make some properties illegal to let unless they are upgraded; and
• Diminish the value and/or marketability of non complaint properties

What should landlords do?

• Ensure properties have a valid EPC;
• Put in place a plan to improve energy efficiency of the property (especially if it is at risk of falling into ‘F’ or ‘G’ rating);
• apply to have a 6 month extension from the date of the grant of a lease to comply with the regulations; and
• consider if there are exemptions to comply with MEES.

For more information, please speak to Duncan Morter on 01904 624185 for advice on the regulations and its implications on your assets.