£3,500 MEES cost cap to take effect from 1 April 2019

Article Posted -
20 Mar 2019

The Department for Business, Energy and Industrial Strategy (BEIS) has confirmed that the amendments to the Energy Efficiency Regulations governing England and Wales will take effect from 1 April 2019.

The changes mean that landlords will be liable to pay up to £3,500 to bring F and G rated properties up to a minimum EPC rating of E. Landlords with existing ‘no cost’ registered exemptions will only remain covered by these until the end of March 2020.

The current MEES requirements mean that landlords with properties which require an EPC cannot start new tenancies in England and Wales in properties with a rating lower than E. From April 2020, all existing tenancies which require an EPC will need to have a minimum E rating.

The key changes from 1 April 2019 include:

  • For F and G rated properties the landlord financial contribution element is capped at £3500 (inc VAT);
  • Introduction of a high cost exemption which applies to properties rated F or G that cannot be improved to band E at a cost of £3,500 or less (inc VAT);
  • Discontinuation of the zero cost to landlords’ exemption;
  • Existing exemptions for landlords currently registered because of being unable to fund energy efficiency improvement will end on 31 March 2020; and
  • Removal of the consent exemption in cases where a sitting tenant has withheld consent to a Green Deal finance plan.

What the NLA has been doing

We have been advocating with the Department of Business, Energy and Industrial Strategy (BEIS) and the Welsh Government, to ensure that the governments’ approach to increasing energy efficiency in the PRS are manageable and appropriate for landlords going forward. We will keep members updated on the outcomes of this over the coming months.

What you can do

Landlords who have a current exemption should make sure that they know whether this will be affected by the new regulations, and seek a new exemption if appropriate after 1 April 2019. Any landlords with F or G rated properties should review their Energy Performance Certificate which indicates what changes they can make to increase the rating of their property, and ensure they meet the requirements or have a valid exemption before 1 April 2020.

NLA members can contact our Telephone Advice Line on 020 7840 8939 for support with managing their relationship with agents. If you're not yet a member click here to see the benefits of signing up.

For further information you can click here to access the guide

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