The Minimum Energy Efficiency Standards (MEES) came into force in April 2018 and aims to prevent lettings of sub-standard properties (currently a rating of F or G). From 1 April 2023 it will become unlawful to allow existing lettings of sub-standard properties to continue. This will bring properties let before 1 April 2018 within the scope of MEES.
Many continue to see MEES as a trivial issue, a result of the lacklustre enforcement. Potential penalties could reach £150,000 along with public naming and shaming, but local authorities have not pursued a single prosecution. They claim they have no budget, it is a low priority, they often can’t agree who has responsibility for enforcement and if they do take action an exemption is lodged.
Landlords can apply for a variety of exemptions online and registration is free and simple. They last for five years and no one checks the application details. Fines can be issued if the information is found to be incomplete or inaccurate.
Listed buildings and lease renewals continue to be areas of uncertainty. Until we have a court case this is likely to continue.
It is important for landlords to consider when leases come to an end, the EPC ratings of properties and when those EPCs expire. Landlords can then decide whether to carry out improvement works or register an exemption.
There are and will be many practical considerations for landlords to consider with their professional advisors. Agents will need to have regard for and advise their clients of the newly introduced RICS Service Charge Code provisions and consultation will be required with solicitors to ensure lease drafting covers what is required and wanting to be achieved. Not only in relation to the service charge but also, to name a few, the rights and reservations, yielding up and statutory compliance provisions.
MEES should not be mistaken as a minor issue. Landlords could be left with unlettable property, reductions in capital values and problems with lenders. Not to mention that the government is also consulting on changes much earlier than expected. Looking to raise the minimum EPC rating to B or C by 2030, part of the continued drive for sustainability.