Minimum Energy Efficiency Standards (Domestic Private Rented Sector) 2018
The regulations set a minimum energy standard of an EPC rating of "E" and above for residential properties for let.
The Minimum Energy Efficiency Standard applies to the domestic private rented (PR) sector in England and Wales. Properties within scope will include any domestic privately rented property which has an EPC, is either required to have an EPC or is within a larger unit which itself is required to have an EPC, either at point of sale, or point of let.
Who is affected by MEES?
The minimum energy efficiency standard will be set at an “E” Energy Performance Certificate (EPC) rating. MEES require landlords of domestic PR properties with F or G Energy Performance Certificate (EPC) ratings to implement cost-effective energy efficiency improvements. As of 1 April 2016, a landlord of a sub-standard domestic property must not unreasonably refuse consent to the making energy efficiency improvements if requested by a tenant. These cost-effective improvements must meet the Green Deal’s Golden Rule – i.e. the expected savings must be greater than the cost. They must be wholly financed at no cost to the landlord, by means of funding provided by central government, a local authority, any other person or tenant or a combination of these financial arrangements.
Landlords will be eligible for an exemption from reaching the minimum standard where they can evidence that they have undertaken those improvements that are cost-effective, but remain below an “E” EPC rating.
The Minimum Energy Standard will apply from 1 April 2018, upon the granting of a new tenancy to a new tenant and a new tenancy to an existing tenant. From 1 April 2020, the regulations will apply to all privately rented property in scope of the regulations.
How we can help
Bierce can guide you through the process of becoming MEES-compliant. Our team of MEES experts can assist property managers and landlords by analysing current portfolios, reporting on their existing energy rating status and identifying which energy saving measures can be carried out to achieve the minimum standard if needed.
We can also help clients identify sources of third party funding, such as ECO, to reduce the costs of any improvements as well as Green Deal Finance.
If a property cannot be fully funded from third party finance we can provide exemption certificates to allow the properties to be lawfully let, even if they remain in Band F or G.
Contact us now so we can get your MEES compliance programme underway and completed before the deadline. As a GDAO and ECO funder we are well placed to assist.