What are the Minimum Energy Efficiency Standards (MEES)?

MEES is a new piece of legislation that affects landlords, which took effect from the 1^st April 2018.

The core of the legislation is that landlords will not be able to let residential properties that have an EPC rating lower than E. Therefore, improvements to the property’s energy efficiency need to be made.

However, the legislation has been designed to be cost neutral to a landlord, and exemptions (for the landlord) apply where this is not possible.

What are the key dates I need to be aware of?

• 1^st April 2018 – no new tenancies can be started if the property is below an E rating.
• 1^st April 2020 – all tenancies are affected from this date – i.e., no lets can happen where a property is below an E rating.

What happens if I don’t comply with the MEES legislation?

• Your property cannot legally be let
• A fine can be levied against landlords who continue to let a property with an EPC rating lower than E

What are the exemptions to the MEES legislation?

There are a number of exemptions within the legislation, which means that works will not need to be done on the property.  These include:

• If 3^rd party consent cannot be obtained
• Where improvements would reduce a property value by greater than 5%
• If the property is only used for for short term leases, such as holiday lets

How Vibrant can help you…

Vibrant can carry out a Compliance Report on your property, which will result in one of three outcomes:

1) the property will be exempt from the legislation

2) it will require a new EPC

3) the improvements required will be eligible for funding.

You can easily book your Compliance Report today by calling us on 01495 234300

Vibrant will project manage the process for you to ensure that your property meets the MEES legislation.

Funding for Improvements

Funding is available to help landlords improve the energy efficiency of their properties. The Government is committed to ensuring the MEES regulations do not entail net or upfront costs to landlords.

Where can I get funding from?

Relevant energy efficiency improvements are those which can be funded via either: –

a) third-party funding (Green Deal finance, ECO, funding provided by central government or a local authority)

b) landlord self-funding

c) a combination of landlord self-funding and third-party funding.

What happens if I can’t secure third-party funding?

If a property is rated EPC F or G and the landlord is unable to secure third-party funding to fully cover the cost of a recommended improvement (i.e. the costs exceed what can be borrowed within the Green Deal ‘golden rule’), the landlord must turn to alternative means of funding, including self-funding. This requirement is subject to a spending cap of £3,500 (inclusive of VAT). This cap applies to the overall cost of improving the property, not to the cost of individual measures.

Therefore, a landlord of an EPC F or G property need only invest a total sum of money up to the level of the cap in improving their property, and need not invest in multiple measures, which individually cost £3,500 (or less).

What’s Green Deal finance?

Green Deal is third-party funding financed by the private sector that helps landlords improve the energy efficiency of their properties in order to comply with MEES legislation. You can visit our Green Deal funding page for more information.

Where can I find more information and advice?

Our expert team can help explain the MEES legislation and how it affects you – please call us on 01495 234300 for an informal chat.