Energy Performance Certificates

Energy Performance Certificates & Minimum Energy Efficiency Standards (MEES)

What are Energy Performance Certificates?

Energy Performance Certificates or EPC were introduced in 2008 and provide information to prospective buyers or tenants about the energy efficiency and carbon emissions of the building along with suggestions of how to improve it. The seller, assignor or landlord is legally responsible for ensuring that the EPC is made available before marketing the property.

What is the minimum energy efficiency standard (MEES)?

Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, it became unlawful to let domestic and non-domestic properties with an Energy Performance Certificate (EPC) rating of F or G from April 2018.
From the 1st April 2018, the minimum energy efficiency standard became applicable to landlords / property owners upon the granting of a lease to a new tenant and lease renewals to existing tenants, unless exemptions apply.

How to comply?

In order to comply, all properties must meet the minimum energy efficiency standard by undertaking permissible, appropriate and cost-effective energy efficiency improvements to meet the minimum EPC rating of E or above. However, there are safeguards in place that allow restrictions on making improvements.

What are the penalties?

Fines can be enforced, dependent on the type of infringement and the length of MEES non-compliance.

Domestic Properties
£1,000 – £5,000
Non Domestic Properties
£5,000 – £150,000

What are the exemptions?

Properties which are let on tenancies of more than 99 years and less than six months are excused, along with any properties which are exempt from having an EPC. Assured tenancies under the Housing Act 1988, and regulated tenancies, such as housing associations are also exempt for domestic properties.

Landlords may be exempt from the minimum energy efficiency standard when:

  • Improvements are not cost-effective
  • It has been independently verified that improvements may decrease the value of a property by 5% or more, or in some circumstances, damage the property
  • Third party consent cannot be obtained for the improvements, for example, planning authorities, tenants, lenders etc

The minimum energy efficiency standard will apply to all privately rented domestic properties within the scope of the regulations from the 1st April 2020, followed by non-domestic in 2023.

Exemptions must be registered with the PRS Exemptions Register, which will be available for domestic and non-domestic properties from October 2017. Please be aware, there are also time constraints

What can Vickers Carnley do?

Vickers Carnley can arrange for a fully qualified and accredited associate assessor to carry out a survey of your property and produce a valid EPC. Where the assessment produces a rating of F or G, we can offer advice on how to carry out effective improvements to your property to obtain a rating of E or better.

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