The Energy Act 2011 contains a number of provisions that have affected owners of a private property; the most significant of these is MEES, which aims to improve the energy efficiency of the most energy inefficient properties. MEES also contributes to the UK legislative targets of reducing CO₂ emissions for all buildings to around zero by 2050.
Who will MEES apply to?
MEES have applied to new lettings and lease renewals since 1 April 2018. The landlord/property owner needs to ensure that the property meets MEES before the lease is granted. However, as of 1 April 2023 all current privately rented property will be required to meet MEES.
Who will MEES not apply to?
Properties that do not require an EPC under current regulations will not be required to meet MEES. Moreover, MEES does not apply to short lettings (six months or less) and lettings over 99 years or more.
Are there any exemptions?
Landlords can be made exempt from MEES if they are able to demonstrate one of the following:
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They have carried out all cost-effective energy efficiency improvements.
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Measures identified that are not cost effective (devalue the property by 5% or more. Or fail to raise the EPC rating above an F)
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If third-party consents are not available despite reasonable effort.
What are the key dates?
April 2018 – The regulations were enforced upon the granting of a new lease as well as lease renewals.
April 2023 – The regulations will apply to ALL privately rented property in scope of the regulations, including where a lease is already in place and a property is occupied.
Are there any penalties for non-compliance?
Financial penalties for non-compliance are linked to the rateable value of the property but could be as much as £150,000. Very important to consider.