Private residential property landlords need to make sure they do not try to grant a new tenancy of longer than six months if the property has an Energy Performance Certificate (EPC) below the E rating.

Unless they have a valid exemption, from 1 April 2020, landlords can no longer continue to let properties covered by MEES regulations if they have an EPC rating below E.

The Minimum Energy Efficiency Standards (MEES), are a minimum energy efficiency level for domestic private rented properties.

What is an EPC Rating?

The EPC measures how energy efficient a property is then given a rating between A and G. Within MEES regulations, a property with a rating of F or lower means the landlord is liable to pay a substantial fine.

Department for Business, Energy & Industrial Strategy (BEIS) says you need to improve the property’s rating to E, if it falls into F or G bands, or register an exemption before you enter into a new tenancy.

Equally, you must improve the property’s rating to E immediately, or register an exemption, if you are currently letting a property with a rating of F or G.

There is a different rule for empty properties, where landlords do not need to make improvements to upgrade the rating until they decide to let it again.

When you need to take action to improve your property

  • A cost cap set at a figure of £3,500 is the maximum you will be required to spend on energy improvements
  • If all the improvements cannot be achieved for this figure, then you can register for an ‘all improvements made’ exemption.

What are the MEES Penalties?

The penalty for renting a property for fewer than three months that is in breach of MEES Regulations will be equivalent to 10 per cent of the property’s value, with a maximum amount of £50,000 and a minimum penalty of £5,000.

After three months, the penalty rises to 20 per cent of the property’s value, with a maximum amount of £150,000 and a minimum penalty of £10,000. Where MEES Regulations are breached, the lease between the landlord and the tenant remains valid and in force.

The scope of MEES can be complicated and there are exceptions, so it would be wise to get in touch with your professional adviser to make sure you are compliant with the law.