The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (known as MEES) will prohibit residential and commercial landlords from letting a property with an Energy Performance Certificate (EPC) that records an energy efficiency rating of below band E (unless an exemption applies). Landlords who grant new tenancies of residential properties on or after 1 April 2018 could be fined up to £4,000 and landlords of commercial property up to £150,000 if they continue to grant tenancies of inefficient properties.
The prohibition will be extended so that landlords who continue to let residential properties on or after 1 April 2020 and commercial properties on or after 1 April 2023 (which fall below the required energy efficiency rating) will be in breach of the regulations and subject to enforcement action by the local trading standards officers (who are also responsible for enforcing the EPC regime).
These changes are being introduced to prevent landlords letting sub-standard properties and are part of the implementation of the ‘Green Deal’ to improve energy efficiency standards in buildings across the Country. It is important that if you are a landlord you consider the energy efficiency rating of your properties and the date on which the prohibition of letting a property with an energy efficiency rating below band E may impact on you. You should also bear in mind that the threshold band could be raised in the future.