MEES – minimum energy efficiency standards
residential MEES
The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, commonly known as the Minimum Energy Efficiency Standards, or MEES, are a set of legal requirements that set a minimum energy standard of an EPC rating of "E" and above for residential properties for let in the private rented sector.
Properties with an EPC rating of less than ‘E’ must be improved with energy efficiency measures to bring their ratings up to at least an ‘E’. Since 1st April 2018, buildings that do not meet the minimum standards cannot be re-let until improvements are made. If owners re-let the property, they will face a penalty fine of up to £5,000.
Exemptions can be registered in certain circumstances. However, these expire after 5 years and do not transfer with a sale of the property to a new owner. By 2020 it will be illegal to continue to lease a domestic property with an EPC rating of ‘F’ or ‘G’
The exemptions are listed below, but on 1st April 2020 the “no cost to Landlord” route to exemption was stopped. This rule said that Landlords only needed to get improvement measures carried out of the could be funded by Green Deal Finance or ECO finance.
Exemption Pathway
Since 1st April 2019 a price cap of £3,500 (including VAT) has been introduced.
If a landlord can improve their property to an E Rating for under £3,500, they will have to do it and will have a property with an E rating or better. Where a landlord is unable to improve their Rating to an E rating by spending £3,500 then they will need to install all measures which can be installed up to the £3,500 cap and register an exemption.
Expenditure on energy efficiency measures (EEMs) since 1st October 2017 can be counted towards the price cap
The regulations apply upon the granting of:
A new tenancy to a new tenant, and,
A new tenancy to an existing tenant (renewal of a fixed term or rolling over into a Periodic Tenancy)
The regulations will apply to ALL privately rented property in scope of the regulations, in line with the existing regulatory “back stop” date of 1st April 2020
how can Sims Consulting help you ?
We can inspect your property and advise on the most cost effect way to either get your property to and E rating or if the cost to do so will be over the £3,500 price cap, we can produce a MEES exemption report. Call us to discuss your requirments
commercial MEES
The non-domestic minimum standards set a minimum energy standard of an EPC rating of "E", and a backstop date on 1 April 2023 to encompass all properties.
From 1 April 2018 landlords must not let any such sub-standard non-domestic property to new tenants, or renew or extend an existing tenancy agreement with existing tenants, unless either:
-
An exemption applies which has been registered on the PRS Exemptions Register; or
-
The landlord has made all the relevant energy efficiency improvements that can be made to the property (or that there are none that can be made) and the property’s energy performance indicator is still below an EPC E, and this exemption has been registered on the PRS Exemptions Register.
Then, from 1 April 2023, landlords must not continue to let a sub-standard non-domestic property to existing tenants (even where there has been no tenancy renewal, extension or indeed new tenancy) or to new tenants, unless an exemption applies.
commercial MEES exemption pathway
What does this mean in practice, well if you are letting or renewing a lease and your EPC is worse then an E Rating you will need to either
-
Get it to an E rating by making improvements
-
Get an Exemption by showing you have done all the work that is in the EPC Recommendation Report that can be paid back over 7 years by the energy savings that measure makes
how can Sims Consulting help you ?
Simple MEES Calculations
Sims Consulting can work out the cheapest way to get your building to an E rating or better. We will run simulations to work out if there is a reasonable priced way to get your property up to MEES Standards.
If these measures can be done within a reasonable budget then we will need to re-inspect after the works to create the new EPC – showing the E Rating or better
If the cost of the measures required achieve an E rating are excessive then you will need to go onto the next stage
MEES exemption reports
Sims Consulting will calculate if you building can get an exemption, working with that the Measures recommended in the recommendation report and showing if they can or cant be paid back via their energy savings they produce over a 7 year period.
As a Landlord you will need to do those measures that CAN be paid back over 7 years from the energy savings.
We will deliver to you all the paperwork required to lodge your 5 year exemption. This will be
-
Starting point EPC or Draft EPC
-
MEES Exemption Report – showing which measures need to be done and those that are exempt, this gives the EPC rating that will be obtained after the non-exempt works.
-
Final EPC showing you have done the measures that will pay back over the 7 Year period and showing after these works that the rating is still lower then an E Rating