LANDLORDS MUST ENSURE COMPLIANCE WITH ENERGY REGULATIONS OR RISK BEING FINED
Residential landlords seeking to continue to rent properties on existing tenancies must ensure their rental properties meet the Minimum Energy Efficiency Standards (MEES) from the 1st April 2020. It has been a requirement from the 1st April 2018 for all new tenancies on residential properties to meet the MEES, however from 2020 this will encompass all existing tenancies as well.
The MEES requires that residential properties must hold an Energy Performance Certificate (EPC) with a rating of an E or above. Failure to comply with the regulations by renting a property that is in breach of the regulations carries substantial financial penalties.
To achieve an E rating or above can be very difficult and expensive, especially when the subject property is old and not built to modern standards. Common improvements made by landlords to improve energy efficiency are new condensing boilers and double glazing for example.
However, what is the course of action when you have spent thousands of pounds trying to reach the magical E rating, only to find that the property is still sub-par? Do you have to keep throwing more money at the property? No. Thankfully, there are a number of exemptions that can be applied for which allow properties below an E rating to continue to be legally let.
There are 7 exemptions covering a range of scenarios. Some of the exemptions, if proven, can mean that you don’t have to spend anything, however they are less commonly used as meeting their requirements can be difficult.
The exemption that I have used most often and found most useful is the ‘All Improvements Made’ exemption. Firstly, under this exemption, if you can show that you have carried out all the available energy improvements to the property that can be made, you will satisfy the exemption. Or secondly under this exemption if you can show that you have spent £3,500 (inc VAT) on energy improvements to the property and still not reached an E rating the exemption can also be secured.
To register the exemption, you must log on to the Private Rented Sector (PRS) Exemptions Register. Once registered you input the properties address details and are required to upload a copy of the EPC and supporting evidence such as invoices that prove at least £3,500 worth of energy improvements have been made.
Once completed you get the exemption straight away as it is a self-certification register. The exemption will last for 5 years, but once it has expired landlords must try again to improve the energy performance of the property or seek a further exemption.
Should you require any assistance or advice on ensuring your rental properties are compliant.
please contact matthew.burton@fishergerman.co.uk or 01565 757970.