We summarised the key points of the up and coming Energy Efficiency (Private Rent Property) (England and Wales) Regulations 2015 (“Mees Regulations”) in an earlier article on the subject Are You MEES Ready?
The first part of the legislation concerning new lettings commences on the 1st April 2018.
The Department for Business, Energy and Industrial Strategy has now published their guidance for landlords on how the Mees Regulations will apply to future lettings of non domestic property.
The guidance confirms that if a premises due to be let has a substandard EPC rating (currently F or G but will no doubt be increased over time) the landlord is expected to undertake all energy efficiency improvement works where the benefit of the resulting energy efficiency pays back the cost of the works within 7 years. Even though the “pay back” is likely to benefit the occupational tenant who is paying the energy bills and not the landlord.
If despite all these works the energy efficiency of the premises cannot be improved to permit the letting, there is scope to apply for an exemption. Without improving the energy efficiency or obtaining the exemption, the landlord cannot let the premises.
Landlords need to start making contingency plans now to ensure that future lettings will not be delayed or prevented because of the poor energy efficiency of their premises.
If you would like further advice on whether the Mees Regulations will prevent future lettings please contact Simon Tennant.