Agents Beware: major rental sector energy changes soon

The Guild of Property Professionals is reminding the rental sector that owners of properties to let have only until April 1 to ensure that their home comply with new MEES regulations.

The Minimum Level of Energy Efficiency Standard ‘E’ will - from April 1 - apply to any property that is let under an assured tenancy, a regulated tenancy or a domestic agricultural tenancy, as well as any other property that is required to have an EPC.

The Guild’s compliance manager, Paul Offley, is reminding agents and landlords that if a property has been marketed for sale or let, or has been modified in the past 10 years, then the likelihood is that the property will require an EPC. 

If the property has an EPC rating of F or G, the landlord will have until April 1 to ensure the necessary steps have been taken to improve its rating to at least a minimum E or register for an exception.

He adds that there are various exemptions that apply.

These include the ‘all relevant improvements made’ exemption, which applies when a landlord has made improvements to the property up to a cost cap of £3,500 including VAT, and the property still does not meet the minimum standards. 

Other exemptions apply, depending on the property and the landlord’s unique circumstances, such as having only recently become a landlord.

“The domestic MEES is not something new and has been around and with us for a number of years. However, this year is the final cut-off date before the prohibition on letting F and G properties will be extended to all relevant properties, regardless of whether there has been a change in the tenancy” explains Offley. 

“After the deadline, if the local authority believes that a landlord has failed to fulfil their obligations under the MEES Regulations, they will issue a compliance notice, and if a breach is confirmed, the landlord will face a possible financial penalty.”

“Landlords have had time to either improve the efficiency rating or apply for an exemption – but lettings agents need to be sure that they are able to demonstrate compliance with the legislation from April 1 2020” he adds. 

Offaly says the Guild is aiming to ensure its member agents organise “a smooth transition for landlords and tenants.”