Changes to MEES Regulations- Landlords self funding
Changes to MEES regulations on the 1st April 2019, will mean that domestic landlords may need to fund the installation of energy efficiency improvements to ensure their properties meet the minimum requirements.
Where domestic landlords are unable to secure third party funding, they will need to dig into their own pockets in order to cover the cost of improving their property to EPC band E. This requirement is subject to a spending cap of £3,500 (incl VAT) for each property, which is applied to the overall improvement costs rather than individual measures.
Clean Growth Minister Claire Perry announced this planned ammendment back in November last year:
“While the vast majority of landlords take great pride in the properties they own, a minority still rent out housing that is difficult to keep warm. Upgrading these homes so they are more energy efficient is one of the most effective ways to tackle fuel poverty and help bring down bills for their tenants, saving them £180 a year. Everyone should be protected against the cold in their own home.”
The Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015, previously provided a 'no cost to landlords' provision which allowed landlords to register a 'no cost to landlord' exemption on the PRS Exemptions Register. This exemption was used by landlords who were unable to make improvements to their property at no cost to themselves. However, from the 1st April 2019 this provision will be removed meaning that landlords will be required to fund improvements themselves, when third party funding (ECO, Green Deal, Grants etc) is unavailable. Those who registered an exemption prior to the 1st April 2019, will also see there exemption period reduced from five years, with landlords now required to make the necessary improvements to their property by April 2020.
Stuart Fairlie Technical & Operations Director of Elmhurst stated “We welcome this change to the regulation. The removal of the ‘no upfront cost’ to the landlord clause will certainly make the regulations easier to understand and implement. As the Clean Growth Strategy document has a mission to improve all homes in the private rental sector to band C by 2030, we believe that this is a positive step to help ensure that our most inefficient homes become warmer and cheaper to run".
For more info:
Elmhurst Members can see all the latest information regarding MEES on our MEES for Energy Assessors webpage. This page also provides links to our fantastic MEES Guide and Fact Sheet which can be used by energy assessors to provide information to landlords.
The Department for Building, Energy & Industrial Strategy (BEIS) has updated its guidance documents for domestic landlords and local councils to reflect this most recent change: