An update on MEES

By Damien Roberts, Existing Dwellings Manager

The domestic Minimum Energy Efficiency Standard (MEES) Regulations form part of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 and are a requirement of the Energy Act 2011. The Regulations apply to certain privately rented dwellings let on a tenancy (i.e. not a licence) and do not apply to the social housing sector.

Currently, privately rented dwellings must have a minimum Energy Performance Certificate (EPC) rating of Band E. Landlords may, of course, aim to achieve a higher rating should they wish.

This means that, subject to certain requirements and exemptions:

n From 1st April 2018, landlords of relevant domestic private rented properties were not legally able to grant a tenancy to new or existing tenant(s) if their property has an EPC rating of Band F or G.

n From 1st April 2019 if an existing tenant moves out and the existing EPC has an F or G rating, the landlord cannot legally commence a new tenancy without carrying out measures to improve the energy efficiency of the dwelling, and can no longer lodge an exemption based on the grounds of ‘no upfront costs’. The current cost cap for the landlord is £3500. At this point the landlord could, if the property has not reached the minimum EPC rating, apply for an exemption via the PRS exemptions register.

n From 1st April 2020, landlords must not continue to let a relevant domestic property which is already let, if that property has an EPC rating of

Band F or G.

These requirements also apply where the property is to be sub-let.

At the end of 2020, the Department for Business, Energy & Industrial Strategy (BEIS) released a consultation on raising the energy performance of domestic PRS properties due to concerns over poor performance and tenants being in fuel poverty. The proposal from BEIS was to raise the minimum rating to EPC band C by 2025 for new tenancies and by 2028 for all tenancies. To achieve this, a new landlords’ cost cap of £10,000 would be introduced, with similar exemption processes as the current standard which include improvements for the property have been completed (or there are none that can be carried out) and the property remains below an EPC Band C.

This month BEIS confirmed that there have been delays to releasing the results of the consultation and a final decision due to internal departmental changes. However, discussions are now taking place within government on the best approach to update MEES but there are no commitments to a timeframe.