Landlords urged to protect properties against MEPS legislation

Landlords urged to protect properties against MEPS legislation
Landlords are now being urged to be pro-active with the 2018 upcoming MEPS (Minimum Energy Performance Standards) legislation, in order to protect their properties from being unable to let…

 

Under the Energy Act 2011, from April 2018 onwards, there will be amendments made to the EPC requirements for property owners, under the name of the Minimum Energy Performance Standards (MEPS), which is also referred to as the Minimum Energy Efficiency Standards (MEES). The new changes will make it unlawful to let residential or commercial properties with an EPC rating of F or G, until their energy efficiency has been addressed. Furthermore, buildings with a current EPC rating of E, may also be affected, as the rating may fall beyond this point upon re-assessment or the minimum standard may be raised to D.

What are the Implications?

This new legislation poses significant implications for landlords and property owners:

  • Properties that have an Energy Rating of F or below, cannot be sold or let
  • Properties that have an E rating now may be affected if the rating drops before 2018
  • The new standards may also apply to re-lettings and sub-lettings
  • Properties may be de-valued due to their marketability status
  • Rent Reviews may be affected
  • A change in purchasing behaviour from buyers

Who is affected?

All rental properties that require an Energy Performance Certificate (EPC), in accordance to the 2012 Energy Performance Building Regulations, will be affected by this new legislation.

This applies to all non-domestic properties in England and Wales.

  • Councils
  • Estate Agents
  • Business Transfer Agents
  • Retail Companies

What are the penalties?

Local Authorities will enforce the regulations, with the Trading Standards undertaking enforcement activity.

The local Trading Standards Officers (TSOs) will have the power to apply penalties:

  • From £5,000 to £150,000, dependent on the value of the property.