What is MEPS?
The Minimum Energy Performance Standards (MEPS) are a set of lawful standards, which domestic and non-domestic private landlords are required to ensure their properties meet, before 1st April 2018.
The Energy Act 2011 requires the Secretary of State for Energy and Climate Change to bring into force regulations, making it unlawful to let properties in England and Wales which do not meet a minimum energy performance standard (MEPS).
Who will it affect?
Further to the latest MEPS, all rental properties which require an Energy Performance Certificate (EPC) in accordance with the Energy Performance of Buildings Regulations 2012 are subject to the regulations.
With an EPC rating of E, private landlords must have installed improvements before granting, renewing or extending a new lease. Where the property falls below an E EPC rating, the landlord will need to register an exemption. For all existing domestic leases, the date is extended to 1st April 2020 and 1st April 2023 for all existing non-domestic leases.
Affecting both non-domestic and residential private rented buildings, the new standards are set to tighten minimum energy efficiency requirements.
How MEPS will be introduced?
The regulations may be introduced in stages:
A soft start: New leases will need to comply with the minimum EPC rating of ‘E’ by 1st April 2018
A hard start: Affecting all leases from the 1st April 2018
A phased introduction: Providing a hard backstop of 2023 for all existing leases. This is the Government’s preferred option.
But how does this affect landlords and what are the implications this could have on rental properties?
The implications of MEPS
- Marketability of some properties may become impossible
- Subsequently, affecting the property valuations
- Adverse effect on rental reviews
- Implications for dilapidations assessments would also exist
At Energy Evaluations, we are experts in providing cost-effective energy solutions. For more information on how we can help you prepare for the MEPS regulations before April 2018, call or email us today. Giving sustainable solutions to property owners across the UK.