the United Nations has just postponed the COP26 climate change meeting in Glasgow (due to COVID-19) is now postponed until summer 2021 and its anticipated that following COP26, the UK government is likely to announce proposed changes to environmental legislation that will include MEES. This is designed to assist the UK government in terms of meeting their Net Zero Carbon target by 2050.

This legislation broadly ensures that the most poorly performing and the least energy efficient buildings are required to be improved.

TIMELINE

1st April 2016

Tenants of residential properties had the right to request energy efficiency improvements from Landlords.  Does not apply to commercial properties.

1st April 2018

Unlawful to grant a new tenancy for either residential or commercial properties with an F or G EPC Rating.

1st April 2020

It is now unlawful to let any residential property (does not apply to commercial property), including those with an agreement already in place, if it does not meet the MEES.  The minimum EPC rating is set to E, meaning that before letting or selling a property, the owner must ensure that the property is higher than F (also capturing renewals).

1st April 2023

Commercial Landlords cannot continue to let the properties with an F or G rating MEES will apply to all leases.  The Minimum EPC rating is set to E. (also capturing renewals).

1st April 2030

It is anticipated that the UK government will raise the MEES and therefore likely that all commercial properties will require a minimum EPC rating of B or C. This will require building owners to implement real improvements to the energy performance of their buildings.

1st April 2050

 the United Nations has just postponed the COP26 climate change meeting in Glasgow (due to COVID-19). This is now likely postponed until summer 2021. We anticipate that following COP26, the UK government is likely to announce proposed changes to environmental legislation that will include MEES. This is designed to assist the UK government in terms of meeting their Net Zero Carbon target by 2050.

What properties are Exempt?

Most of the exemptions to obtaining an EPC rely on the European Performance Buildings Directive (EPBD) laws, UK legislation and Part L Building Regulations (BR).  Some of these apply to places of worship, listed buildings etc.  If you would like a full list please contact us.  Other exemptions (outside of the above legislations) which apply to relevant ‘energy efficiency improvement’ or combination of relevant energy efficiency improvements, could result in a reduction of more than 5% in the market value of the domestic property, or of the building of which it forms part (e.g. internal wall insulation reducing the internal area of the property).  A tenant refusing to give consent to Green Deal measures can also be used, although this does not apply for empty properties and will also be listed on the PRS Exemptions Register.

Apart from the above, commercial properties also have further exemptions:

1. On a tenancy granted for a term not exceeding six months, unless (i) the tenancy agreement contains provision for renewing the term or for extending it beyond six months from its beginning, or (ii) at the time when the tenancy is granted, the tenant has been in occupation for a continuous period which exceeds 12 months, or
2. On a tenancy granted for a term certain of 99 years or more.
3. Obtain in writing from an approved independent installer that the ‘improvement’ could cause a negative impact on the fabric or structure.  Note: you will need a letter for each improvement measure from a qualified and accredited installer.
4. Does not apply to new landlords until six months after purchase.

I thought Listed Buildings were exempt and didn’t need EPCs?

Yes listed buildings are exempt however you still need to carry out an assessment to see if the ratings recommendations could be down to items which are not listed.  for example this could be poor low efficient Heating and ventilation Air Conditioning (HVAC) and or lighting, which is not listed and could be changed.

Do I need the common parts of a residential block assessed separately from the self contained flats?

Yes if this area has Heating and ventilation Air Conditioning (HVAC), this area would come under none domestic assessment and have its own separate certificate.

What Should Landlords be doing?

If landlords do not comply, there may be the risk of a financial penalty and summons to court. Worse still, poor energy performance will inevitably impact upon the ability to re-let or sell certain properties, with a subsequent negative impact upon property valuations.

The most proactive landlords are already taking steps now, to identify the “at risk” properties, so that a strategy can be implemented for improvements to energy performance and future proofing.

As part of our Planned Preventative Maintenance and also Technical Due Diligence during acquisition, PRE are currently advising clients on their strategy ahead of the anticipated increase in MEES.