Minimum Energy Efficiency Standard (MEES) Regulations mean that from 01 April 2018, it is illegal to re-let properties with a rating lower than ‘E’. Both domestic and non-domestic properties in England and Wales will need to meet these minimum standards. EPC Certificates are valid for 10 years and all properties must have current certificates in date.

Farmhouses let under an agricultural tenancy, both Agricultural Holdings Act (AHA) 1986 tenancies and Farm Business Tenancy (FBT) are exempt from these regulations. Licences are also not within the scope of the regulations. Residential properties let under the following tenancies are required to comply with the new regulations:

• – Assured tenancies under Housing Act (HA) 1988 (including ASTs)
• – Regulated Tenancies Under Rent Act 77
• – Assured agricultural occupancies under s.24 HA 1988
• – Protected tenancies – s.3(6) Rent (Agriculture) Act 1976
• – Statutory tenancies – s4(6) Rent (Agriculture) Act 1976
• – Excludes social housing but includes extensions and renewals

A new tenancy or renewal of an existing tenancy will not be issued on any properties below an ‘E’ rating after 01 April 2018. Fine of up to £5,000 for Landlords who are in breach of this new legislation.  Properties with existing tenancies will need to have an EPC rating of ‘E’ or above by 01 April 2020.

Properties with ratings below an E will need to make efficiency improvements to boost the rating before the property is compliant to let. EPC reports provide a list of recommended measures to help improve the energy efficiency performance of the property. Due to the nature of many older rural houses and cottages, these have been highlighted as more susceptible to not reaching the required standards and won’t always meet the standards required for compliance. There are a number of temporary exemptions which Landlords can register for on 01 October 2017 if any of the following criteria applies:

• – The Landlord has made all relevant energy efficiency improvements and the EPC rating is still ‘F’ or ‘G’
• – There are no relevant energy efficiency improvements that can be carried out to the property.
• – Devaluation: The required improvements will either cause damage or reduce the value of the property by 5% or more
• – Consent: It is not possible to gain the consent for the works to be completed required by the Tenant, Lender or Superior Landlord.
• – Cost: The identified improvement measures are not cost-effective, either within a seven year payback or under the Green Deals Golden Rule.
• – New Landlords (further rules apply).

Exemptions are valid for 5 years from the date of registered.

We strongly advise that those letting properties, start implementing the required changes immediately to ensure compliance by the 01 April 2018. This will also allow the cost of works to be staggered if extreme measures are required. Meller Speakman are able to provide further advice on this, if required please contact get in touch.