MEES Archives - Small Business Insider

Are you ready for some MEES time?

Posted on February 12, 2018 Written by Administrator

If you are a landlord and the title of this article means nothing to do, then you really should read what follows with some urgency!

2015

Way back in 2015, the government passed legislation relating to let properties in England and Wales. Those new laws said, in summary, that by 2018 any property being let must meet certain Minimum Energy Efficiency Standards (MEES) before the landlord could conclude the letting agreement.

That meant that the by now familiar Energy Performance Certificate or EPC, needed to carry a minimum rating of “E” or the property could not be legally let.

Since then, the government, various landlord associations and related media sources have all constantly issued reminders that the deadline was rapidly approaching. At the time of writing, the cut-off date of April 2018 is just a few short weeks away.

So, if you haven’t done something about it already, you really need to do so.

The basics

If you really have done nothing about MEES so far, here is a quick checklist of things you may need to consider as a matter of some urgency:

check to see whether or not you have an EPC. If you do not, then your top priority should be to obtain one;
if your property does not meet the minimum “E” rating, you may need to follow professional advice relating to what work you need to undertake in order to achieve the new minimum grade;
note that this applies to both domestic and non-domestic properties. It applies in any situation where you are considering a new letting agreement or extending/changing an existing one for whatever reason;
if you are running under an existing tenancy agreement that is not going to change, you do have a little more breathing space. In such circumstances, the new minimum energy efficiency levels must be achieved by 1 April 2020 for domestic properties and from 1 April 2023 for non-domestic properties.

Reality check

Almost inevitably, there may be some who question whether this is a real issue or a bureaucratic exercise. If you’re so inclined, it’s worth keeping in mind that:

your landlord insurance may be at risk in situations where, following a claim, you are found not to be in full compliance with the laws governing let properties;
whilst it is true that historically the enforcement of some legislation was rather casual, there is no reason to believe that will be the case here. More recently, successive governments and politicians of all parties have shown a consistent determination to crackdown on landlords who are not complying with legislation;
the legislation does provide for the categorisation of some properties as being “exempt”. An example might be a historic listed building. If the work required to meet the minimum energy performance standards was such that it would put at risk of the character of the ancient structure, then it might be granted an exemption. However, such exceptions will probably be rare and if you wish to apply for such status there is a formal procedure that you should engage with as soon as possible.

If you’ve done nothing so far about MEES, this really is one of the last warnings you might get. It’s time to take action now!

Landlords – are you ready for MEES?

Posted on September 14, 2017 Written by Administrator

MEES is coming – the implementation date is 1^st April 2018.

MEES (Minimum Energy Efficiency Standards) defines a set of regulations that rented properties will need to comply with. Fail to do so and you could be in line for a £4,000 fine.

This will have an impact on large numbers of landlords, so it’s in your interest to find out more about this now.

The full legislation and even the summary version runs to many thousands of words. As a result, here, we can only pick up on the bigger implications. It really would be sensible to read more of the detail behind this important government-led change.

Why MEES exists

For some time, successive UK governments have stated the need for greater energy conservation in homes and businesses.

This has resulted in various legislation and regulation that has had an effect in almost all sectors. In this instance, the particular focus is on domestic let properties and the responsibilities or obligations of landlords.

While the over-arching objectives are Green, there is also a clear drive to stop those landlords who refuse to spend money in energy conservation measures around their properties as they can simply pass on the consequential inefficient energy consumption costs to their tenants.

MEES – the principles

In essence:

from the 1^st April 2018, all new lets and renewals of let residential properties will need to show that the property concerned has a minimum energy efficiency rating of ‘E’;
from 1^st April 2020, this will apply to all lets, including longer-term agreements.

Any work required to get an energy efficiency rating of ‘E’ or better, must be carried out before these dates.

There may be certain limited exceptions. That might include, for example, a listed property where energy conservation work cannot be carried out without potentially causing the two sets of legislation to be in conflict. Such exceptions must be applied for and once granted, kept on a public register.

What this means for some landlords, is that substantial work may be required within the next few months if fines are to be avoided.

Insurance implications

While the legislation does not, in itself, state new landlord insurance requirements, there may be a knock-on effect.

Typically, landlord insurance policies may contain clauses to the effect that the property must conform to all prevailing laws and local regulations. Theoretically, if your property does not conform to MEES, that might be an issue.

You should speak to an expert provider of landlord insurance for clarification.

What it means for you

This appears as if it will mean significant expenditure for large numbers of landlords, particularly those who own older properties or those that are in need of updating.

The first stage in this would appear to be obtaining an Energy Performance Certificate (EPC) to see where your property is currently graded. To be clear, it will be an offence to let out a property rated at “F” or “G” after 1^st April, though there may be some variations on that for some properties.

Action is required NOW to protect your interests!

Addendum

At the time of writing, the government is considering making some changes to the legislation, though these are still under discussion. The above legislation-led requirements are therefore still officially in place.

There has also been some scientific evidence to suggest that EPCs have consistently under-estimated the insulating effect of solid walls (typically applicable to Pre-WWI properties and some after). The effects of this on future EPCs is not yet clear.

It would be wise though to continue on the assumption that the MEES changes are happening and that they may affect you.

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