It is important for all landlords to know the energy performance standards required within a rental property. With changing legislation it is easy to get confused.
What are the MEES regulations ?
From the 1st April 2020, all domestic privately rented properties must have a minimum Energy Performance Certificate (EPC) rating of E or better to be compliant with MEES regulations, unless there is a valid exemption.
Any properties that are let with an EPC F or G without a valid exemption are considered non-compliant and the landlord may be liable for a fine of up to £5,000.
Landlords with non-compliant properties must immediately begin the process of improving the energy efficiency of their property or file for an exemption.
Landlords are expected to spend up to £3,500 on improving the energy efficiency of their properties up to an EPC E, although they can spend above this amount.
Funding is available for landlords to improve the energy efficiency of their properties if their tenants meet the eligibility criteria. Landlords must own no more than 4 properties in order to qualify for this funding.
Landlords with non-compliant properties are able to access funding from the Energy Company Obligation (ECO). Click here to find out if your tenants are eligible for this scheme.
Landlords with compliant or exempt properties can access ECO funding as well as grant funding from the government to improve the energy efficiency of their properties. Click here to find out if your tenants are eligible for grant funding from the government.
Future changes to the MEES regulations
While nothing has been confirmed yet, it’s likely the MEES regulations will be increasing in the future to a minimum EPC D or C in order to help achieve the national goal of increasing all domestic properties to an EPC C by 2030.
Therefore, improving the energy performance of your properties is still important even if you are compliant with current MEES regulations. Landlords with properties with an EPC E may become non-compliant in the near future.
A property that is well insulated with efficient heating and lighting will provide a more comfortable living experience. This will make the property more attractive to tenants increasing demand for the property. It can also lead to better tenant satisfaction, reducing turnover and the associated costs.
Homes with colder temperatures increase chances of condensation forming which can lead to damp and mould. Increasing the energy efficiency of homes means that tenants can afford to properly heat their homes reducing the risk of damp and mould.
Energy used to heat and power homes results in greenhouse gas emissions which contributes towards climate change. Increasing the energy efficiency of your property will mean tenants use less energy, helping to reduce the impact of climate change.
A household is experiencing fuel poverty when they can’t afford to properly heat their home. Living in a cold homes as a result of fuel poverty can lead to several negative health impacts, especially for children as they’re developing. Click here to learn more about fuel poverty.
People living in privately rented properties are much more likely to experience fuel poverty with just under 25% of private tenants experiencing fuel poverty in 2022. One of the biggest causes for fuel poverty is energy inefficient homes.
Increasing the energy efficiency of your property can help reduce the chances of your tenants experiencing fuel poverty, protecting them from the dangerous impacts of living in cold homes.