MEES: Lancaster Landlords Are You Compliant?

MEES: Lancaster Landlords Are You Compliant?

There are many regulations for Lancaster landlords to consider but on the 1st of April 2018, the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 was introduced. You’ll find that this is more commonly referred to as MEES, standing for Minimum Energy Efficiency Standards, and many landlords across the country will be impacted by these regulations.

The key issue of the new regulation is that for all new lets and tenancy renewals, a property must hold an Energy Performance Certificate, an EPC, of an E or better. Moving forward, MEES will apply to all tenancies from 2020 so even if you are a landlord that is not affected by these regulations now, you may need to make changes to ensure you comply in the future. There are also suggestions that in the future, the standard for MEES will increase from E to C or D, so it is worth bearing this in mind.

There are many reasons for a landlord or property owner to invest in their property and improve the energy efficiency rating. A more energy efficient home should increase in value and it will offer reduced energy bills for tenants, which is a positive promotional point. However, given the costs and time associated with making energy efficient upgrades, it is understandable why some landlords in Lancaster have been hesitant to make significant changes at their property or properties.

There are some exemptions to MEES and if your property doesn’t currently comply with the regulations, you will still be able to let property if any of the following circumstances apply:

• The building doesn’t require an EPC

• The EPC is more than 10 years old

• The tenancy is shorter than six months and there is no right of renewal

• The tenancy is for longer than 99 years

It is also possible for landlords to clam an exemption on one of the following matters:

• If all energy efficiency improvements have been undertaken and the property still falls below an E rating

• Where work carried out to improve the property will lower the market value of the property by a minimum of 5>#/p###

• If consent from a third party is required to carry out improvements and this approval has not been granted

While there are exemptions, there are also strict penalties for landlords that fail to comply with the regulations. For a property that is let for less than three months, the penalty is set at 10% of the rateable value of the property, with £5,000 as the minimum and £50,000 as the maximum penalty. For property that has been let for longer than three months, the penalty can reach 20% of the rateable value with the minimum level being £10,000 and the maximum penalty being £150,000.

These are serious penalties and it is essential that landlords in Lancaster are aware of MEES. Worryingly, selected studies recently indicate that many landlords are unaware of MEES and the implications of the new regulations. A study undertaken by a specialist insurance company, Just Landlords, found that only 4% of respondents (landlords and tenants) were aware of MEES.

If you need guidance on this matter or you want to ensure that you are fully aware of the latest regulations that landlords need to comply with, contact Mighty House. We are local estate agents in Lancaster and we look forward to assisting you.