With just three months until the new Minimum Energy Efficiency Standards (MEES) on rented properties come into force, do you know whether your property will comply?
Currently every property on sale or to be let must have by law an Energy Performance Certificate (EPC), which must be available to potential buyers or tenants and is a guide to how energy efficient the property is. The guide uses a simple A to G rating with A being the best energy efficient and G the worst. The guide also includes information on standard running costs and energy improvements that could be made to improve the rating.
New legislation comes into force from April 2018 which means that after that date it will be illegal to sign a new lease on a residential or a commercial property that has an F or G rated EPS, even to an existing tenant. If any properties fall into these categories they will need to be upgraded in order to remain on the rental market.
According to a recent report in Landlord News there are some exemptions such as some listed buildings, holiday lets, tenant leases of less than 6 months or 99 years, if improvements are deemed unviable and will not pay for themselves over a seven year period, where any improvement would reduce the value by 5%, or a detached property with a total floor space of less than 538 square foot. This is by no means a definitive list and the Government have announced that they are planning to open an exemptions register.
Breaching this new requirement can result in a fine of up to £4,000. With possibly one in ten residential properties currently not meeting the new standard it is more important than ever to check your property’s energy efficiency.
The Government has provided a guidance document on how landlords can comply with the new MEES and with April just around the corner there’s no time to waste in making sure your property meets the new legal requirements.
You may also like to check your let property insurance to ensure that you are also protected against a number of other issues that can arise from being a landlord and if you need a competitively priced buy to let insurance, why not give us a call on 01206 655 899 or obtain a quote online.