From April 2018, new MEES rules mean a landlord cannot renew or grant a new tenancy of longer than 6 months if their property has an EPC rating of 'F' or lower. Anything lower will mean the landlord is liable to pay a substantial fine. Some landlords will need to make improvements before granting a new tenancy.
Properties and Tenancies Involved:
ARLA Propertymark explains that the regulations apply to any property type that requires an EPC and is one of the following tenancy types:
- An assured tenancy (including an assured short hold tenancy) defined in the Housing Act 1988.
- A regulated tenancy defined in the Rent Act 1977
- An agricultural tenancy as set out in the Energy Efficiency (Domestic Private Rented Property) Order 2015.
Stages of Implementation
Stage 1 - with immediate effect, all properties that don't meet exemption criteria must have a minimum Energy Performance Certificate of an E rating before any new tenancy is granted.
Stage 2 - By 1 April 2020 ALL tenanted properties must have an energy rating of E or above, regardless of whether the tenant has been in the property for years, or it is a new tenancy.
What are the Penalties for Failing MEES?
Any landlord in breach of the standards for fewer than 3 months will be liable to pay 10% of the property’s rateable value – from a minimum of £5,000 up to a maximum of £10,000.
Any landlord in breach of the standards for more than 3 months, the penalty rises to 20% of the rateable value of the property – from a minimum of £10,000 to a maximum of £150,000.
From April 2023, the new MEES regulations will apply to all lettings – even existing one. (There are some exemptions - please ask us for details.)
If you would like to know more or discuss how you may be affected by MEES, contact JTM Homes. We’re here to help.