What is MEES?
MEES is the acronym for Minimum Energy Efficiency Standards. The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, or ‘MEES’ Regulation for short, are Government regulations in place to ensure that let properties for residential use meet a minimum level of energy efficiency.
On 1st April 2020 new rules on energy efficiency were rolled out and changes came into effect since 1 April 2023 that apply to new leases, as well as existing leases. Currently, to comply with the MEES Regulations, properties must not be let if the property has an Energy Performance Certificate (EPC) rating lower than an E rating unless the property is exempt.
Since April 2020 the MEES regulations apply to all rental properties, and it will be illegal to rent out any home that fails to meet the minimum required energy rating. Since 1 April 2023, landlords of rented properties will be in breach of the regulations if any existing leases are in place of properties with an EPC rating less than an E.
Exemptions for landlords to continue letting a sub-standard property.
The most likely exemptions to be applicable when the EPC rating is below the minimum of E for landlords are as follows:
• Consent exemption: The landlord is unable to obtain necessary consent to carry out improvement works. This exemption applies to mainly for listed buildings, which do not need to meet this minimum level of energy efficiency.
• Devaluation exemption: The landlord has not increased the EPC rating to the minimum level as a result of it reducing more than 5% of the value of the property. To comply with this exemption from the landlord, they must have obtained a report from an independent surveyor which states that making the relevant energy efficiency improvement would result in a reduction of more than 5% in the market value of the property.
• Temporary exemption: A landlord will have six months before any enforcement action can be taken if they are in breach of MEES Regulations. This exemption will allow the buyer of a sub-standard property up to six months to assess the situation and improve the energy efficiency, prior to running the risk of enforcement action.
If landlords are to rely upon the exemptions available, they must ensure that all exemptions are noted on the PRS Exemptions Register for MEES.
Potential methods to improve the energy efficiency of a property.
There are also steps that can be taken for landlords that aren’t eligible for exemptions, in order to improve the property’s energy efficiency:
• Replacing old or damaged boilers with more effective models.
• Insulating loft spaces, and the areas around windows and doors.
• Installing smart metres and thermostats.
• Replacing halogen bulbs with LEDs.
Planned updates to MEES regulations.
Since April this year, ratings for EPC below an E are not acceptable and these properties are considered ‘sub-standard’. If tenants remain in a property regarded as sub-standard then the obligation will be on the landlord to bring the property up to standard, whilst the tenancy will remain valid.
In 2027 the minimum rating could be raised to C, increasing again to B in 2030. Although this is not set in stone, it does show the government’s intention to ensure all properties reach a high level of energy efficiency. Our advice to landlords, particularly new leases, is to ensure that pre-emptive measures are put in place to enable the EPC rating to be as high as possible in the event of future changes in legislation.
The MEES regulations are not especially beneficial for new landlords, as they could find themselves facing enforcement action by their local authority if the minimum required rating is not met. Fines as much as £150,000 could be issued if rental properties do not comply. We advise these individuals to explore the options to find ways to improve the EPC before any future laws create stricter regulations.
