3rd March, 2017 by Joanna Nicholls
The clock is ticking for landlords to prepare for the new Minimum Energy Efficiency Standards (MEES) which come into force on 1 April 2018. From this date, it will be unlawful to grant a new lease for properties which have an energy performance certificate (EPC) rating below E, unless an exemption is registered.
Landlords failing to comply with the new regulations face hefty penalties - so it’s important to act now and plan ahead. Landlords should review their property portfolio and consider options for improving the energy efficiency of low-rated buildings to raise their EPC rating above the minimum threshold.
The regulations
MEES Regulations are designed to help the government achieve its targets of reduced carbon emissions by ensuring that commercial and domestic landlords achieve a certain level of energy efficiency before they can let their buildings.
Since April 2016, tenants of domestic properties have been able to request their landlord’s consent to energy efficient improvements. Consent must not be unreasonably withheld, notwithstanding what the tenancy agreement says (subject to exemptions).
From 1 April 2018 landlords will not be able to grant a new lease (including renewals or extensions) of domestic or non-domestic property that is rated at F or below on the building’s EPC.
From 1 April 2020 landlords of domestic property will be prohibited from continuing to let an already tenanted building rated at F or below, the cut-off date for landlords of commercial buildings is 1 April 2023.
Exemptions to the post-2018 obligations
From 1 April 2017 landlords of non-domestic properties can register exemptions. Landlords of domestic properties can register exemptions from 1 October 2017. To be valid, exemptions have to be on the public register and landlords can only rely on exemptions for a period of five years.
Exemptions include:
Penalties for non-compliance
Landlords will face hefty penalties for non-compliance:
Act now
While the new regulations do not come into force until April 2018, there are a number of practical steps landlords can take now, to prepare for the changes and help mitigate the impact of the changes:
Joanna Nicholls is a Partner with Howes Percival specialising in Commercial Property Law
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