DTM Legal is reminding landlords they have less than one year to make their properties energy efficient or potentially face fines of up to £150,000. Legislation will make it unlawful to let a property with an Energy Performance Certificate (EPC) rating of F or G.
The scheme aims to ensure all rented properties are as efficient as possible and will apply to landlords in England and Wales. The regulations follow the Minimum Energy Efficiency Standards (MEES) which were introduced under The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
From 1 April 2018 all new tenancies and renewal tenancies for domestic and non-domestic properties, must have an EPC rating of E or above. Landlords with a current rating of F or G will need to make property alterations which can include anything from changes to lighting and heating systems, to more costly measures like changes to wall construction and roof insulation.
Those who do not make the appropriate changes will face penalty fines ranging between £5,000 and £150,000.
Take action
- Take time to review properties to determine which properties fall within the scope of MEES.
- Review properties to identify if any hold a rating of F or G
- Plan in advance to avoid the risk of a future unlawful letting
- Make tenants aware of upcoming works and agree provisions in relation to their access to the property.
- Be proactive. Improving EPC ratings can be time consuming and costly.
- Consider EPC before providing consent for “tenant alterations” – these could diminish the energy rating of the property.
There are a few exceptions to the tenancies and types of buildings which are caught by the MEES.
In addition there are some proposed exemptions to those properties which fall below the minimum standard, but these exemptions must be registered on the PRS (Private Rented Sector) Exemptions Register.
With a wealth of experience, and the ability to draw upon expertise from colleagues and professional contacts, DTM Legal‘s Property team provides a comprehensive range of services to client across the UK.
To find out how we can help you, contact Michael Wright on 01244 354804 or email michael.wright@dtmlegal.com.
