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.
For the most up to date information on landlord responsibilities, visit the dedicated gov.uk website here or to find out more about the Minimum Energy Efficiency Standards click here.
Minimum Energy Efficiency Standards (MEES) Regulations
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.
Non-compliant properties
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.
Available funding
Funding is available for landlords to improve the energy efficiency of their properties if their tenants meet the eligibility criteria.
Click here to find out if your tenants are eligible for funding from the Government under the Home Upgrade Grant. This is only available for properties that are MEES compliant or exempt, and is restricted to landlords who own 4 or fewer properties. The Local Grant: Warm Homes scheme, which will be available from early next year, will not place a limit on the number of properties that can be upgraded.
Landlords with non-compliant properties can access funding from the Energy Company Obligation (ECO). Click here to find out if your tenants are eligible for this scheme.
Future changes to the MEES regulations
The Government has confirmed plans to raise the Minimum Energy Efficiency Standards (MEES) for privately rented homes in England and Wales to the equivalent of EPC C by 1 October 2030, subject to the necessary legislation being implemented.
As a result, funding and support for properties below EPC C may become more limited over time as landlords seek to meet the new requirements. Therefore, improving the energy performance of your properties using existing funding opportunities remains important, even if they currently comply with the existing EPC E minimum standard.
Landlords with properties rated EPC D or E should consider planning improvements now to help prepare for the future requirements and take advantage of support that is currently available.
What are the benefits of increasing the energy efficiency of your rented properties?
Better living conditions
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.
Damp and mould
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.
Help tackle climate change
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.
This is an important factor for tenants when choosing a property to rent. A survey by Landlord Today found that two thirds of respondents would choose a property with eco-friendly features over one without, while more than half said they would specifically seek out a property with these features.
Fuel poverty in privately rented homes
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. Tenants with lower energy costs are also more likely to be able to pay their rent on time.